HOW 


ASSURANCE 


HOW    TO   SELL 
ASSURANCE 


A  GUIDE  FOR  THE  AGENTS  OF 
THE  EQUITABLE  LIFE  ASSURANCE 
SOCIETY  OF  THE  UNITED  STATES 


BY 

WILLIAM   ALEXANDER 


REVISED  AND  ENLARGED  EDITION 
1902 


COPYRIGHT  1902 
EQUITABLE  I,IFE  ASSURANCE  SOCIETY 


THE  WINTHROP  PRESS 
NEW  YORK 


HOW  TO   SELL  ASSURANCE. 


PREFACE. 

This  book  is  designed  to  instruct  young  agents,  and 
to  remind  old  agents  of  things  they  sometimes  forget. 
Its  title,  "  How  to  Sell  Assurance,"  is  suggestive.  Mod- 
ern life  assurance  is  something  that  people  are  ready  to 
buy.  They  do  not  ignore  its  protective  value,  but  they 
now  add  to  that  an  appreciation  of  its  value  as  an  in- 
vestment. The  agent  is  a  salesman;  and  to  succeed,  he 
must  know  the  wares  he  has  to  offer.  He  must  know 
more  than  this,  he  must  learn  to  read  character,  and  he. 
must  understand  himself. 

It  will  pay  you  to  read  this  book,  even  if  you  should 
find  it  an  arduous  task,  for  it  not  only  contains  the  best 
advice  that  the  writer's  thirty  years  of  observation  and 
experience  in  the  business  enable  him  to  give,  but  it  em- 
bodies the  best  practical  suggestions  that  have  come  to 
him  from  the  brightest  canvassers  of  the  "  strongest 
company  in  the  world."  W.  A. 


NOTE. 

These  chapters  do  not  give  full  descriptions 
of  the  different  policies  issued  by  the  Society. 
A  separate  pamphlet  is  issued  describing 
each  important  contract.  The  chief  aim 
here  is  to  bring  together  information  and 
suggestions  not  likely  to  be  found  elsewhere. 


HOW  TO   SELL  ASSURANCE. 


CONTENTS. 


PAGE. 

PREFACE  3 

PRELIMINARY  CHAPTER 7 


PART  I. 

DIFFERENT  CONTRACTS. 

CHAPTER.  PAGE- 

I.     GOLD  BONDS n 

II.     GOLD  BONDS  (Continued) 16 

III.  GOLD  BONDS  (Continued) 18 

IV.  ENDOWMENT  BOND 24 

V.     GUARANTEED  CASH-VALUE  POLICY 28 

VI.     INDEMNITY  POLICY 33 

VII.     INSTALMENT  ASSURANCE 36 

VIII.     CONTINUOUS  INSTALMENT  POLICY 39 

IX.     JOINT-LIFE  ASSURANCE 45 

X.     TERM  ASSURANCE 47 

XI.     YEARLY  RENEWABLE  TERM  POLICY 49 

XII.    ANNUITIES 53 

XIII.  DOUBLE  ENDOWMENT 58 

XIV.  ANNUAL  DIVIDEND  POLICY 62 

XV.     NON-PARTICIPATING  POLICY 66 

XVI.    CHILD'S  ENDOWMENT 69 

XVII.     IMPORTANT  DISTINCTIONS 72 

XVIII.     How  TO  CHOOSE  A  POLICY 77 


6  HOW  TO   SELL  ASSURANCE. 
PART  II. 

GENERAL  HINTS. 

CHAPTER.  PAGE. 

I.     DON'T 85 

II.     CONFIDENCE 88 

III.  DON'T  Go  Too  FAST 92 

IV.  WILL — CONCENTRATION  —MOMENTUM 97 

V.  ADVANTAGES  OF  HAVING  THE  EQUITABLE  BACK  OF  You  99 

VI.  SURPLUS 104 

VII.    THE  BEST  Is  THE  CHEAPEST 108 

VIII.  How  TO  COMPETE  WITH  "CHEAP"  ASSURANCE     .   .   .  in 

IX.  AVOID  A  REFORMED  ASSESSMENT  COMPANY  .   .   .   .   .114 

DANGER  OF  DOING  BUSINESS  ON  ONE  PLAN 115 

X.     DON'T  GAMBLE  WITH  YOUR  WIFE'S  MONEY 116 

XL     SAUCE  FOR  THE  GOOSE 119 

XII.     BETTER  THAN  A  GOVERNMENT  BOND 122 

XIII.  Low  INTEREST  TO  THE  AGENT'S  ADVANTAGE 125 

XIV.  How  TO  PREVENT  SHRINKAGE  IN  INCOME 128 

XV.     A  GOLDEN  OPPORTUNITY 134 

XVI.  DON'T  BUY  AN  ANNUITY  FROM  A  WEAK  COMPANY  .   .  141 

XVII.     LIVE  AND  LEARN 146 

XVIII.     LEARN  A  LESSON  FROM  THE  DENTIST 148 

XIX.     RIGHT  POINT  OF  VIEW 152 

XX.     RIGHT  POINT  OF  VIEW  (Continued) 155 

XXI.     RIGHT  POINT  OF  VIEW  (Continued) 159 

XXII.     OFFICERS  CAN  GIVE  POINTS  TO  AGENTS 163 

XXIII.  THE  VALUE  OF  SENTIMENT  TO  THE  AGENT 169 

XXIV.  A  SENTIMENTAL  APPEAL  Is  LEGITIMATE 179 

XXV.  A  SENTIMENTAL  APPEAL  MAY  BE  AVOIDED  .   .   .   .186 


HOW  TO   SELL  ASSURANCE. 


PRELIMINARY  CHAPTER. 

The  man  who  attempts  to  sell  modern  life  assurance 
must  be  up  to  date.  Obsolete  methods  will  not  succeed. 
There  is  special  significance  in  the  very  phrase  "  how  to 
sell  assurance,"  In  old  times  it  was  "  how  to  assure 
lives."  It  is,  has  always  been,  and  always  will  be,  the 
chief  glory  of  life  assurance  that  it  protects  the  widow, 
the  orphan  and  the  aged;  and  although  the  modern 
policy  furnishes  this  protection  as  completely,  or  more 
completely,  than  ever  before,  the  new  contract  is  vastly 
superior  to  the  old  in  that  its  value  as  an  investment  is 
enhanced.  The  truth  of  this  will  be  apparent  as  the 
different  contracts  come  under  review.  At  the  outset 
there  are  other  things  to  which  the  agent  should  give 
attention.  He  should,  for  example,  see  to  it  that  he 
begins  with  the  right  point  of  view  regarding  life  as- 
surance; that  he  assumes  the  right  attitude;  that  he 
approaches  his  work  in  the  right  spirit.  The  agent  who 
approaches  the  public  confidently  as  a  salesman,  knowing 
that  he  has  something  of  the  highest  value  to  sell,  which 
the  public  will  appreciate,  and  buy  as  soon  as  the  facts 
are  made  clear,  will  be  moving  in  the  right  direction. 
But  this  is  not  enough.  The  best  agent  is  the  man  who 
discovers  that  he  has  chosen  a  pursuit  that  is  capable  of 
affording  him  intense  pleasure.  The  pleasure  to  be 


8  HOW  TO   SELL  ASSURANCE. 

derived  from  successful  canvassing  may  be  as  keen,  and 
has  the  same  characteristics,  as  the  pleasure  experienced 
by  the  successful  fisherman  or  the  mighty  hunter.  To 
the  agent  who  thoroughly  appreciates  the  quality  of  the 
work  in  which  he  is  engaged ;  the  enthusiasm ;  the  eager 
determination  to  triumph;  the  gratification  in  success, 
will  be  like  that  of  the  winning  football  player,  who  has 
thrown  all  his  intellectual  as  well  as  all  his  physical 
powers  into  an  irresistible  determination  to  win.  In  this 
general  connection  the  reader  is  advised  to  turn  to  the 
last  three  chapters  (XXIII,  XXIV  and  XXV)  in  this 
volume,  after  reading  which,  the  chapters  dealing  with 
the  different  forms  of  policies  issued  by  the  Society  may 
be  read  with  advantage  before  turning  to  the  rest  of  the 
general  hints  to  agents. 


PART  I. 

THE  DIFFERENT 

CONTRACTS  OF  ASSURANCE 

ISSUED  BY  THE  SOCIETY. 


HOW  TO  SELL  ASSURANCE.  1 1 


CHAPTER  I. 

GOLD  BONDS. 

T.he  first  difficulty  every  agent  has  is  to  secure  atten- 
tion. It  is  not  always  easy  to  get  a  man  to  grant  you  an 
interview  if  life  assurance  is  to  be  the  topic  of  conversa- 
tion; but  in  these  times  it  is  not  hard  to  get  any  man 
who  has  money  to  invest  (and  that  is  the  man  the  agent 
wants)  to  consider  the  offer  of  a  Gold  bond  running  for 
twenty  years,  bearing  five  per  cent,  interest,  and  issued 
and  guaranteed  by  the  "  strongest "  company,  the  one 
whose  surplus  is  larger  than  that  of  any  other  life  as- 
surance organization  in  the  world. 

The  agent  who  offers  Gold  Bonds  must  thoroughly 
understand  what  it  is  he  has  for  sale.  This  is  especially 
important  because  the  Gold  Bond  contract  differs  essen- 
tially from  all  the  other  policies  and  contracts  issued  by 
the  Society. 

There  are  two  ways  of  looking  at  the  Gold  Bond  con- 
tract, and  the  agent  will  do  well  to  study  it  from  both 
points  of  view.  When  he  comes  to  deal  with  the  public 
one  of  them  will  be  sufficient,  and  he  will  find  the  second 
the  most  attractive  and  effective. 

i.  The  Gold  Bond  contract  viewed  as  a  policy  of  assurance 
PAYABLE  at  maturity  in  Gold  Bonds. 

When  the  agent  effects  the  sale  of  a  block  of  Gold 


12  HOW  TO   SELL  ASSURANCE. 

Bonds,  he  explains  to  the  purchaser  that  he  is  granted 
the  privilege  of  paying  for  the  Bonds  in  instalments,  and 
that  after  the  purchaser  has  paid  his  first  instalment  a 
preliminary  contract  called  the  "  Contract  of  Sale  "  will 
be  delivered  to  him  to  bind  the  transaction.  Now,  this 
Contract  of  Sale  is  nothing  more  nor  less  than  an  assur- 
ance policy.  The  first  *'  instalment "  paid  by  the  pur- 
chaser (the  assured)  is  the  premium  on  the  policy,  and 
the  "  subscription  "  is  really  an  duplication.  It  is  not  un- 
til this  assurance  policy  actually  matures  (whether  in  con- 
sequence of  the  death  of  the  assured,  or  at  the  end  of  the 
endowment  period,  if  an  Endowment),  that  the  actual 
bonds  are  issued.  The  transaction,  in  short,  is  simply 
this :  A  man  signs  an  application  applying  for  a  life  or 
endowment  policy,  which  policy  at  maturity  is  to  be  paid 
in  Gold  Bonds  instead  of  cash.  (But  it  is  stipulated  in 
the  contract  that  if  the  beneficiary  does  not  want  the 
Bonds,  the  Society  will  give,  instead  of  the  Bonds,  their 
equivalent  value  in  cash.) 

Now,  while  this  description  of  the  Gold  Bond  con- 
tract is  absolutely  accurate,  there  is  a  second  way  of 
looking  at  the  transaction  which  is  equally  accurate,  and 
has  the  advantage  of  being  novel  and  attractive  and 
more  easily  understood  by  the  outside  investor  than  the 
method  already  explained.  Let  us  view  the  transaction, 
then,  from  this  second  point  of  view,  and  we  are  sure 
that,  after  having  done  so,  you  will  agree  that  it  is  the 
true  way  to  submit  the  matter  to  the  public. 


HOW  TO   SELL  ASSURANCE.  13 

2.  The  Gold  Bond  contract  viewed  as  an  investment,  pro- 
tected by  assurance. 

When  the  transaction  is  viewed  in  the  way  now  to  be 
described,  the  agent  becomes  a  banker  or  broker.  The 
assured  becomes  the  investor,  or  purchaser,  and  his  ap- 
plication becomes  a  "  subscription"  for  a  block  of  Bonds. 

You  explain  that  you  have  for  sale  a  new  issue  of  5 
per  cent.  Gold  Bonds  (either  coupon  or  regis- 
tered) to  run  for  twenty  years,  payable  in  gold  at  ma- 
turity, and  bearing  a  5  per  cent,  income,  payable  semi- 
annually  in  gold.  They  are  for  sale  in  lots  of  from  $1,000 
to  $200,000.  This  much  any  investor  can  understand, 
but  when  you  go  on  to  explain  that  the  investment  has 
two  novel  and  valuable  characteristics,  it  will  be  neces- 
sary for  you  to  see  to  it  that  your  explanations  are  plain 
and  clearly  understood. 

In  the  first  place,  you  must  show  how  it  is  that  the 
Bonds  are  to  be  paid  for  in  equal  annual  instalments 
and  not  in  one  lump  sum  in  advance ;  and,  in  the  second 
place,  you  must  explain  that  the  investment  is  insured — 
that  is  to  say,  it  is  protected  against  loss  or  impairment. 
The  first  instalment  must  be  paid,  of  course ;  and  second, 
and  subsequent,  instalments  must  be  paid  if  the  investor 
lives ;  but  if  death  comes  after  only  one  instalment  has 
been  paid,  the  Equitable  Society  steps  in  and  makes 
good,  as  it  were,  the  failure  of  the  investor  to  complete 
his  part  of  the  contract.  Instantly  the  Society  issues 
the  Bonds  and  delivers  them  to  the  beneficiary,  and  the 
beneficiary  has  nothing  to  pay  and  everything  to  receive. 
And  the  Bonds  will  immediately  begin  to  earn  an  in- 


14  HOW  TO   SELL  ASSURANCE. 

come  of  5  per  cent,  to  run  for  twenty  years,  after  which 
the  bonds  will  be  paid  in  gold. 

The  agent  can  then  show  that  these  Bonds  are  prefer- 
able to  Government  securities.  They  are  practically  as 
safe,  because  they  are  issued  by  the  strongest  financial 
institution  of  its  kind,  whose  surplus  is  larger  than  that 
of  any  other  company.  And  in  certain  respects  they  are 
superior  to  Government  securities,  (i)  because  the  in- 
come is  larger;  (2)  because  the  cost  is  less ;  (3)  because, 
as  we  have  already  seen,  payment  is  to  be  made  in  instal- 
ments, and  (4)  because  they  are  insured. 

Continuing  in  the  same  strain,  the  agent  can  impart 
the  following  information  in  his  own  language : 

TERMS. 

The  purchaser  may  pay  for  these  Bonds  in  twenty  equal  annual 
instalments,  or  in  fifteen  instalments  if  preferred.  The  price  of 
the  Bonds,  in  consequence  of  the  assurance  feature,  varies  ac- 
cording to  the  age  of  the  purchaser. 

The  price  to  the  purchaser  who  is  young  is  less  than  to  the 
purchaser  who  is  old;  but  the  cost  is  moderate  in  any  case, 
especially  when  we  consider  all  the  incidental  advantages,  in 
addition  to  the  fact  that  the  investment  is  guarded  by  assurance, 
and  that  payment  is  not  required  in  one  lump  sum. 


For  those  who  wish  to  provide  a  permanent  investment  for 
the  support  of  wife  or  children  or  other  dependents,  the  pur- 
chase may  be  made  on  a  basis  more  economical  than  under  the 
plan  of  paying  for  the  bonds  in  a  fixed  number  of  instalments. 
This  more  economical  method  is  to  stipulate  that  the  payment 
of  instalments  shall  continue  during  the  lifetime  of  the  pur- 
chaser, but  that  they  shall  cease  at  his  death,  and  that  the  bonds 
(fully  paid  up)  shall  thereupon  be  delivered  to  the  beneficiary. 
This  plan  is  designed  expressly  for  those  who,  able  to  continue 
to  support  those  dependent  upon  them  during  their  lifetime, 
wish  to  leave  a  capital  for  their  support  after  the  "  bread  win- 
ner "  has  been  taken  away.  Not  only  does  an  investment  in 


HOW  TO   SELL  ASSURANCE.  15 

Gold  Bonds  supply  this  capital,  but  it  furnishes  it  in  the  form 
of  an  absolutely  secure  investment,  yielding  a  guaranteed  income 
of  5  per  cent. 

AS  COLLATERAL  SECURITY. 

After  three  instalments  have  been  paid,  the  EQUITABLE  SO- 
CIETY will  make  a  Loan  at  5  per  cent,  interest,  which  may  be  used 
by  the  purchaser  to  aid  him  in  paying  subsequent  instalments. 
(The  amount  of  the  loan  will  depend  on  the  number  of  instal- 
ments paid  in  each  case.) 

GUARANTEED    SURRENDER    VALUE    WHILE    INSTALMENTS    ARE    BEING 

PAID. 

If  the  purchaser  of  these  Bonds  desires  to  withdraw,  the  trans- 
action can  be  terminated  and  a  surrender  value  obtained  from 
the  Society  at  any  time  after  three  instalments  have  been  paid. 

This  value  may  be  drawn  in  cash,  but  there  are  other  methods 
of  adjusting  the  transaction. 

PROFITS. 

These  Bonds  are  veritable  bonds,  but  the  purchaser  enjoys,  in 
addition,  some  of  the  advantages  of  a  stock  investment  without 
the  ordinary  risk.  This  unique  characteristic  calls  for  explana- 
tion: The  business  of  the  EQUITABLE  SOCIETY  is  transacted  on 
the  "mutual  plan,"  in  consideration  of  which  the  purchaser  of 
one  or  more  of  these  Gold  Bonds  will  share  in  the  profits  of  the 
business.  That  is  to  say,  at  the  end  of  a  stipulated  period  (either 
fifteen  or  twenty  years)  he  will  receive  his  full  share  of  profits, 
according  to  his  investment  in  bonds,  as  apportioned  by  the 
Actuaries  of  the  Society.  These  profits  will  be  in  the  shape  of  a 
cash  dividend,  which,  when  applied  as  an  offset  against  the  pur- 
chase price  of  the  bonds  will  reduce  their  cost,  thus  enhancing 
their  value  without  diminishing  their  security. 

GUARANTEED    MARKET  VALUE. 

If  the  purchaser,  when  these  bonds  are  about  to  be  issued, 
wishes  to  convert  them  into  cash,  the  EQUITABLE  SOCIETY  guaran- 
tees that  their  market  value  shall  not  be  less  than  130  at  their 
date  of  issue.  Instead  of  delivering  the  bonds,  the  Society  stands 
prepared  to  pay  the  purchaser  their  value  in  cash  at  the  rate  of 
130.  That  is  to  say, — 

For  a  single  Bond  whose  par  value  is  $1,000  the  Society  will 
pay  $1,300  cash. 

For  a  block  of  Bonds  whose  par  value  is  $100,000  the  Society 
will  pay  $130,000  cash. 

For  a  block  of  Bonds  whose  par  value  is  $200,000  the  Society 
will  pay  $260,000  cash. 


1 6  HOW  TO   SELL  ASSURANCE. 


CHAPTER   II. 

GOLD  BONDS.— (Continued.) 

The  agent  can  often  succeed  in  opening  a  conversa- 
tion, even  with  a  perfect  stranger,  by  saying :  "  Would 
you  be  interested  in  making  an  investment  that  would 
give  your  wife,  in  the  event  of  your  death,  an  absolutely 
sure  and  guaranteed  income  of  five  per  cent,  for  twenty 
years?"  Such  a  question  is  always  interesting  to  any 
man  who  cares  for  his  family,  and  it  leads  up  to  the  dis- 
cussion of  the  Gold  Bond  Contract  in  a  very  easy  and 
interesting  way. 

One  of  our  best  agents  says : 

"  I  usually  begin  by  demonstrating  the  absolute  safety  of  the 
investment ;  then  I  illustrate  the  convenience  of  paying  for  it 
in  small  annual  instalments ;  and  finally,  I  show  what  additional 
value  and  protection  is  given  to  the  investment  by  the  assur- 
ance." 

"  In  offering  these  Bonds,  I  use  precisely  the  same  arguments 
that  I  would  use  in  selling  railroad  bonds.  And  just  here  I  want 
to  make  a  suggestion :  We  often  make  the  mistake  of  assuming 
that  every  business  man  we  approach  knows  all  about  financial 
matters,  whereas  my  experience  is  that  half  the  people  I  encoun- 
ter do  not  know  the  difference  between  a  life  assurance  '  pre- 
mium '  and  the  '  premium  '  on  the  price  of  a  railroad  bond.  This 
should  be  made  clear  to  the  uninitiated.  For  example:  I  see 
to  it  that  my  client  understands  that  $10,000  of  five  per  cent, 
gilt-edged  railroad  bonds  cannot  be  bought  in  these  times  for 
$10,000.  He  must  have  a  '  premium  '  of  from  $1,000  to  $2,500 
(according  to  the  market  price  of  the  bonds)  to  add  to  that 
sum  before  he  can  buy  them.  Then  I  proceed  to  show  that  bonds 


HOW  TO   SELL  ASSURANCE.  17 

bought  at  such  a  price  do  not,  of  course,  net  5  per  cent,  on  the 
money  invested  (perhaps  they  will  only  net  3  per  cent,  or  3J^ 
per  cent.,  for  the  rate  will  depend  not  only  on  the  price  but  the 
length  of  time  the  bonds  have  to  run).  The  longer  the  bonds 
have  to  run  the  higher  price  they  will  bring  if  sold,  because  the 
higher  will  be  the  interest  rate  realized.  If  all  this  is  understood 
the  value  of  our  Bonds  will  be  seen,  and  the  purchaser  will 
value  them  either  to  keep,  or  because  he  knows  that  they  will 
demand  a  premium  if  sold. 

"  Here  is  another  point.  If  a  man  already  owns  railroad  or 
other  bonds  which  yield  him  an  income,  it  may  be  suggested  to 
him  that  by  investing  that  income  in  one  of  our  Bond  Contracts 
he  may  greatly  increase  his  estate  at  death,  and  increase  in  still 
greater  proportion  the  income.  For  example,  if  he  is  less  than 
35  years  of  age,  and  holds  $10,000  of  bonds  which  yield  3^  per 
cent.,  he  can  with  the  income,  buy  $10,000  of  our  5  per  cent.  Gold 
Bonds,  thus  doubling  his  estate  at  death  and  much  more  than 
doubling  the  income." 


1 8  HOW  TO   SELL  ASSURANCE* 

CHAPTER   III. 

GOLD  BONDS.— (Continued.) 

The  most  precious  possession  of  a  business  man,  or 
of  a  firm,  or  of  a  corporation  is  surplus. 

In  the  winter  of  1899,  just  before  Christmas,  there 
was  a  semi-panic  in  New  York.  Note  the  following, 
written  at  that  time : 

"  The  Trust  Company,  of  this  city,  that  closed  its 
doors  a  few  days  before  Christmas  had  millions  of  as- 
sets; so  had  the  Boston  bank,  and  the  manufacturing 
companies,  and  the  merchants  and  brokers  who  sus- 
pended payment  at  about  the  same  time.  What  they 
lacked  was  surplus.  Innumerable  investors  all  over  the 
country  who  had  bought  securities  suffered  from  the 
same  deficiency,  when  suddenly  there  was  an  unexpected 
drop  in  market  values ;  and  it  is  stated  that  during  the 
week  before  Christmas,  orders  for  Christmas  presents 
aggregating  hundreds  of  thousands  of  dollars  were  can- 
celed at  the  shops  in  this  and  other  cities  by  these  people 
who  were  short  of  surplus. 

"  Surplus  is  the  measure  of  the  wealth  and  financial 
strength  of  individuals  and  of  associations  of  individuals 
— such  as  the  Equitable  Society.  And  as  the  Equitable 
has  the  largest  surplus,  it  is  the  best  assurance  company 


HOW  TO   SELL  ASSURANCE.  19 

to  patronize;  and  as  it  offers  investment  securities,  an 
agent  should  have  little  difficulty  in  selling  them. 

"Why? 

"  i.  Because  he  can  point  to  the  Society's  surplus. 

"  2.  Because  these  bonds,  unlike  woolen  underwear,  or 
the  stocks  and  bonds  which  many  investors  held  last 
December,  cannot  shrink.  At  maturity  they  will  cer- 
tainly be  paid.  While  they  run  there  can  be  no  reduc- 
tion in  the  income  on  them.  Five  per  cent,  will  certainly 
be  paid  every  year.  There  can  be  no  default  or  sus- 
pension. 

"  3.  Because  of  the  moderate  price  and  the  easy  terms 
on  which  they  can  be  bought. 

"  Show  your  client  the  value  of  a  block  of  bonds  in  a 
case  where  death  came  prematurely.  It  will  set  him 
thinking,  and  before  long  he  will  ask  you  what  $10,000 
of  bonds  will  cost  him.  If  he  prefers  the  Endowment 
form,  you  can  tell  him  that  the  cost  cannot  be  more  than 
a  certain  sum,  and  that  it  will  necessarily  be  less  if  he 
should  die  before  all  the  instalments  fall  due,  and  will 
be  less  also  if  he  survive  the  period,  because  of  the  divi- 
dend which  will  then  be  paid.  Even  if  he  should  prefer 
a  life  contract,  you  can  explain  that  under  no  circum- 
stances can  the  cost  be  more  than  so  much  a  year;  and 
that  is  quite  as  definite  a  statement  as  a  man  could  make 
about  his  rent  or  his  butcher's  bill.  He  can  tell  how 
much  he  spends  each  year,  but  he  cannot  tell  for  how 
many  years  he  must  continue  to  pay  his  necessary  living 
expenses. 


20  HOW  TO   SELL  ASSURANCE. 

"But  your  client  may  say :  '  The  question  of  cost  is  a 
gamble  after  all.'  Well,  you  can,  for  the  sake  of  argu- 
ment, admit  that  it  is  a  gamble.  It  may  aid  you  in  sell- 
ing your  bonds.  You  will  find  few  clients  from 
whose  composition  the  gambling  instinct  has  been  alto- 
gether eliminated ;  and  you  can  reply :  '  It's  a  good 
gamble,  anyway.  The  investment  cannot  cost  you  more 
than  I  have  stated,  and  may  prove  to  be  a  marvelous  bar- 
gain/ And  if  the  investor  should  have  twinges  of  con- 
science, you  can  remind  him  that  absolute  perfection  is 
seldom  attainable  in  human  undertakings ;  that  he  must 
gamble  in  one  way  or  another  whether  he  wants  to  or 
not ;  and,  if  so,  it  is  better  that  it  should  be  an  innocent 
form  of  gambling  than  a  pernicious  form ;  in  short,  that 
it  is  better  that  he  should  gamble  a  little  about  the 
amount  which  an  investment  made  for  the  protection  of 
his  family  shall  cost,  than  that  he  should  stake  the  hearts, 
the  prosperity,  the  health,  perhaps  even  the  life  itself,  of 
his  wife  and  children.  For  the  man  who  does  not  pro- 
tect his  family  against  the  accident  of  his  premature 
death  is  a  gambler,  and  if  he  loses,  his  widow  and  his 
orphan  children  must  pay  the  stakes." 

In  this  connection  see  Part  II,  of  this  book,  Chapters 
XII,  XIV  and  XV,  all  of  which  deal  with  Gold  Bonds. 


SUMMARY. 


FIVE  PER  CENT.  GOLD   BOND. 


THREE    PER    CENT.    RESERVE. 

Forms:  Ordinary  Life,  15  or  20  Year  Period. 
10  Payment  Life,  15  or  20  Year  Period. 
15  Payment  Life,  15  or  20  Year  Period. 
20  Payment  Life,  20  Year  Period. 
10  Year  Endowment,  10  Year  Period. 
15  Year  Endowment,  15  Year  Period. 
20  Year  Endowment,  20  Year  Period. 

The  purchaser  of  a  Gold  Bond,  instead  of  receiving 
a  policy,  receives  a  "  Contract  of  Sale."  This  Contract 
of  Sale  provides  that  he  shall  pay  the  price  of  the  Bond 
in  instalments. 

Under  the  Contract  of  Sale  the  investment  is  pro- 
tected by  life  assurance;  hence  the  instalments  (or 
premiums)  vary  according  to  the  age  of  the  purchaser. 

On  the  maturity  of  the  Contract  of  Sale  the  Society 
delivers  the  Gold  Bond  (or  bonds).  Each  Bond  runs 
for  20  years  from  the  ist  of  January,  or  the  ist  of  July, 
next  succeeding  its  date  of  issue.  At  the  end  of  the 
twenty  years  the  Bond  matures  and  is  paid  in  gold. 

The  Bond  may  be  either  registered  or  coupon.  If  a 
coupon  bond,  it  has  40  coupons,  payable  as  they  come 
due,  on  January  I  and  July  I  of  each  year. 

N.  B. — An  extra  coupon  is  added  to  provide  for  the 
payment  of  interest  during  any  period  of  months  or 
days  between  the  issue  of  the  Bond  and  the  first  regular 
interest  date. 

GUARANTEES  AND  PRIVILEGES. 

Under  the  Contract  of  Sale  various  privileges  are 
secured  to  the  Purchaser ;  and  loans  and  surrender 
values  in  cash,  automatic  paid-up  assurance,  and  ex- 
tended assurance  are  guaranteed. 

DIVIDENDS. 

The  Contract  has  an  ACCUMULATION  PERIOD  of  10,  15 


OF  THE 


or  20  years,  and  at  the  end  of  the  period  the  purchaser 
receives  his  full  share  of  surplus-profits  as  determined 
by  the  Actuaries,  thus  reducing  the  cost  price  of  the 
Bond. 

VARIOUS    FORMS. 

If  the  assurance  granted  under  the  Contract  of  Sale 
is  based  on  the  Ordinary  Life  form,  then  instalments 
must  be  paid  until  the  purchaser  dies,  whereupon  the 
Contract  of  Sale  matures  and  the  Bond  will  be  issued, 
unless  the  beneficiary  prefers  to  cash  the  transaction, 
in  which  case  the  Society  will  pay  $1,300  for  each  $1,000 
Bond.  (Of  course,  if  the  beneficiary  prefers  the  cash 
to  the  Bond,  the  Society  will  not  go  to  the  expense  and 
labor  of  actually  issuing  the  Bond,  but  will  pay  the  cash 
in  lieu  thereof.) 

If  the  Contract  is  based  on  the  Limited  Payment  Life 
form,  then  the  instalments  will  cease  after  the  stipu- 
lated number  have  been  paid,  but  the  Contract  will  not 
mature  and  the  Bond  will  not  be  delivered  until  the 
death  of  the  purchaser. 

If  the  Contract  is  based  on  the  Endozvment  form,  then 
at  the  end  of  the  Endowment  period  the  Contract  will 
mature  and  the  Bond  will  be  delivered  to  the  purchaser 
himself;  but  if  the  purchaser  should  die  before  the 
expiration  of  the  Endowment  period,  the  contract  will 
mature  at  once  in  consequence  of  his  death,  and  the 
Bond  will,  thereupon,  be  delivered. 

LOANS. 

Loans  may  be  obtained  during,  instead  of  at  the  end 
of  any  year,  if  the  full  premium  for  the  year  has  been 
paid.  Loans  are  subject  to  the  payment  in  advance 
of  interest  at  5  per  cent.  If  the  Society  has  made  a 
loan,  and  the  loan  has  not  been  paid  off  when  the  Con- 
tract matures,  the  loan  must  then  be  paid  with  any  in- 
terest that  may  be  due.  Otherwise  the  amount  of  the 
Bond  delivered  will  be  less  the  amount  of  the  pur- 
chaser's indebtedness  to  the  Society. 


IN  CASE  OF  SURRENDER. 

If  the  Contract  of  Sale  is  surrendered  before  its  ma- 
turity for  cash,  then,  of  course,  the  purchaser  also  sur- 
renders all  title  to  the  Bond;  or  if  the  contract  be  sur- 
rendered for  paid-up  life  or  endowment  assurance,  the 
assurance  takes  the  place  of  the  Bond,  and  all  claim 
to  the  Bond  is  necessarily  relinquished;  but  if  the  ex- 
tended term  assurance  option  is  taken  and  death  occurs 
before  the  term  runs  out,  the  beneficiary  will  receive 
either  the  Bond  ($1,000)  or  its  equivalent  value  in  cash 
($1,300). 

HOW    BONDS    ARE    ISSUED. 

Note  that  coupon  bonds  can  only  be  issued  in  the  de- 
nomination of  $1,000.  Any  odd  amount  above  or  below 
$1,000,  or  a  multiple  of  $1,000,  must  be  issued  in  the  form 
of  a  registered  bond.  While  the  Society  will  always 
be  ready,  subject  to  its  rules,  to  issue  coupon  bonds,  if 
preferred,  it  is  well  to  remember  that  registered  bonds 
are  more  compact,  are  equally  valuable,  and  are  more 
secure.  It  is  safer  and  more  convenient  also  for  the 
owner  to  receive  his  interest  direct  from  the  Society 
in  the  form  of  a  check  under  a  registered  bond  than 
to  have  the  trouble  and  risk  of  coupons. 

Note  particularly  that  the  price  which  the  Society  is 
prepared  to  pay  for  its  new  issue  of  Bonds  is  more  than 
it  will  pay  on  its  old  form  of  Bonds,  whether  already 
issued  or  to  be  issued  when  Contracts  now  running 
shall  mature.  This  is  because  the  premium  on  the  old 
contract,  based  on  the  3^2  per  cent,  standard,  is  lower. 
The  new  Contract  of  Sale  is  based  on  the  3  per  cent, 
standard;  hence  the  premium  is  higher,  and  the  price 
the  Society  will  pay  for  the  new  bonds  is  higher. 


24  HOW  TO  SELL  ASSURANCE. 


CHAPTER  IV. 

THE  ENDOWMENT  BOND. 

There  are  a  great  many  people,  nowadays,  who  can  be 
satisfied  only  with  guarantees;  and  if  the  guarantees  are 
numerous  enough  and  substantial  enough,  they  can  be 
satisfied  much  more  readily  than  if  the  chief  value  of 
the  contract  depends  on  a  future  dividend,  whose  amount 
cannot  be  stated  in  advance. 

In  such  cases,  even  if  a  cheaper  policy  is  finally  se- 
lected, the  Endowment  Bond  is  an  excellent  contract  for 
the  agent  to  begin  with.  The  guarantees  are  larger  and 
more  numerous  than  under  any  other  contract.  The 
guaranteed  loans  and  surrender  values  are  large,  and 
begin  at  the  end  of  the  third  year.  The  guarantee  that 
in  the  event  of  death  the  return  may  be  more  but  can 
under  no  circumstances  be  less  than  the  premiums  paid 
with  compound  interest  at  4  per  cent.,  is  in  itself  a  most 
attractive  feature.  The  guarantee  of  the  face  of  the 
Bond  in  cash  at  the  end  of  twenty  years  is  definite  and 
exact.  The  fact  that  (although  the  amount  of  the  sur- 
plus profits  cannot  be  stated  in  advance)  the  Actuaries 
will  credit  the  bond  with  its  full  share  of  surplus  adds 
to  the  attractiveness  of  the  investment. 

In  reciting  the  guarantees  under  this  contract,  it  is 
of  course  perfectly  legitimate  to  refer  to  all  the  pro- 


HOW   TO   SELL  ASSURANCE.  2$ 

visions  of  the  contract  as  guarantees.  Immediate  pay- 
ment is  guaranteed.  The  incontestable  clause  is  a  most 
important  guarantee.  The  options  are  guaranteed.  Final- 
ly, the  fact  that  these  guarantees  are  backed  by  a  sur- 
plus larger  than  that  of  any  other  company  rounds  out 
this  line  of  argument  in  handsome  shape. 

Everyone  knows  that  United  States  Government 
bonds  cannot  be  bought  at  the  present  time  on  a  basis 
that  will  pay  the  purchaser  as  much  as  3  per  cent.,  while 
the  Endowment  Bond,  which  is  practically  as  safe  as 
a  Government  Bond,  guarantees  the  purchaser,  as  a 
minimum,  4  per  cent,  compound  interest  in  case  of  death 
at  any  time  within  twenty  years.  On  the  other  hand,  if 
the  Bond  is  in  force  at  the  end  of  twenty  years,  it  then 
matures  and  the  profits  then  apportioned  are  paid  to  the 
investor  in  addition  to  the  face  of  the  Bond. 

The  argument  in  the  leaflet  entitled  "  Better  than  a 
Government  Bond"  can  be  applied  to  the  Endowment 
Bond  also.  The  young  man  who  cannot  plank  down 
$10,000  can,  nevertheless,  acquire  at  once  a  capital  of 
$10,000  by  depositing  a  few  hundred  dollars  annually; 
and  if  he  should  die  before  all  the  instalments  have  been 
paid,  the  result  is  quite  as  favorable  to  his  estate  as  if 
he  had  lived  to  pay  them  all. 

It  is  easy  after  enlarging  upon  the  Endowment  Bond 
to  fall  back  upon  some  form  of  "  life  "  contract,  if  the 
premium  on  an  Endowment  Bond  is  too  high,  for  it  is 
always  easier  to  work  down  to  a  cheaper  policy  than  to 
work  up  to  a  more  expensive  one. 


SUMMARY. 

THE   ENDOWMENT   BOND, 
WITH  GUARANTEED  CASH  VALUES. 

THREE  PER  CENT.  RESERVE. 
(WITH  PROFITS — DEFERRED  DIVIDEND  POLICY.) 

Forrns:  20-Year  Endowment,  20- Year  Period. 
15-Year  Endowment,  15- Year  Period. 

This  Bond  must  not  be  confused  with  Bonds  previous- 
ly issued  under  the  same  name.  It  is  superior  to  older 
forms  in  the  following  respects: 

1.  No  Bond  heretofore  issued  has  Guaranteed  Cash 
Values  during  the  Accumulation  Period. 

2.  Under  no  Bond  previously  issued  has  the  Society 
agreed  to  make  loans  after  3  years. 

Note  that  the  assurance  part  of  the  contract  in  this 
Bond  provides  for  the  payment  of  the  face,  as  an  endow- 
ment, at  maturity. 

3.  In  case  of  death  during  the  period,  the  return  to 
the  Beneficiary  may  be  more,  but  can  never  be  less  than 
the  sum  of  the  tabular  premiums  paid,  compounded  an- 
nually at  4  per  cent,  interest.    In  other  words,  it  is  stipu- 
lated in  the  contract  that  if  all  the  tabular  premiums 
compounded  at  4  per  cent,  exceed  the  face  of  the  Bond, 
the  excess  shall  be  added  to  the  Bond  and  paid  there- 
with. 

This  important  guarantee  answers  the  objection  some- 
times raised  that  the  return  in  the  event  of  premature 
death  under  a  Deferred  Dividend  Policy  or  Bond  is 
less  than  under  a  Policy  granting  annual  dividends. 

4.  There  are  a  greater  variety  of  options  than  have 
been  offered  under  any  other  form  of  Bond. 


5.  Grace  is  granted  in  the  payment  of  premiums,  as 
is  also  the  privilege  of  changing  the  beneficiary. 

6.  The  Extended  Assurance  feature  is  also  incorpo- 
rated in  this  Bond. 

IMPORTANT  NOTE 
REGARDING  EXTENDED  ASSURANCE. 

If  the  Extended  Assurance  Value  is  selected  this  as- 
surance will  be  for  the  Principal  of  the  Bond  only,  and 
will  not  carry  with  it  the  feature  explained  above. 

Where  the  Extended  Assurance  Value  is  selected 
and  the  Policy  is  extended  as  life  assurance  until  the 
end  of  the  endowment  period,  the  assurance  then  ceases, 
and  the  Assured  can  draw  in  cash  the  amount  of  the 
pure  endowment  stated  in  the  Policy. 

GUARANTEED   VALUES 

Note  that  although  the  premiums  differ,  the  Guaran- 
teed Cash,  Loan,  and  Paid-up  Values  are  identically  the 
same  as  in  the  case  of  the  Guaranteed  Cash  Value  20- 
Year  Endowment  Policy  with  20-Year  Period,  and  as 
in  the  case  of  the  1 5-Year  Guaranteed  Cash  Value  En- 
dowment Policy  with  ij-Year  Period. 


28  HOW  TO   SELL  ASSURANCE. 


CHAPTER  V. 

THE  GUARANTEED  CASH-VALUE  POLICY. 

It  would  have  been  quite  proper  to  have  begun  this 
series  of  papers  with  a  description  of  the  New  Guaran- 
teed Cash  Value  Policy — that  is  to  say,  the  Society's 
newest  form,  brought  up  to  date,  and  containing  all  the 
newest  attractions — for  the  assurance  part  of  the  Gold 
Bond  contract  belongs  to  the  G.  C.  V.  class,  and  the 
Endowment  Bond  is  a  G.  C.  V.  Endowment  Policy,  with 
certain  special  advantages  added  in  consideration  of  the 
higher  premium  charged. 

The  reason,  then,  for  dealing  with  the  Bonds  first  is 
because  they  are  more  attractive  to  the  investor  than  a 
simple  policy  of  assurance;  hence  a  bond  contract  is  a 
good  one  for  the  agent  to  begin  with.  But  to  clearly 
understand  the  Gold  Bond  contract,  and  the  Endowment 
Bond,  the  agent  must  familiarize  himself  with  the  G.  C. 
V.  policy.  Moreover,  all  the  most  important  contracts 
issued  by  the  Society  belong  to  the  G.  C.  V.  class ;  such, 
for  example,  as  the  Indemnity  Policy,  the  Continuous 
Instalment  Policy,  etc. 

This  G.  C.  V.  policy  is  especially  attractive  because  a 
liberal  cash  value  is  guaranteed  after  the  policy  has  be- 
come three  years  old,  and  because  at  the  end  of  the  Ac- 
cumulation Period  the  assured  has  the  privilege  of  with- 


HOW  TO   SELL  ASSURANCE.  2p 

drawing  the  entire  3  per  cent,  reserve  as  a  cash  surren- 
der value,  even  if  the  policy  is  issued  on  a  "life  "  form. 
Hence  the  name  given  to  this  contract.  But  it  must  not 
be  forgotten  that  there  are  many  other  equally  important 
guarantees,  such  as  a  surrender  value  in  paid-up  assur- 
ance, and  the  guarantee  of  a  full  share  of  surplus  as  com- 
puted by  the  Actuaries  at  the  end  of  the  accumulation 
period.  The  Society  also  guarantees  a  loan  at  5  per 
cent,  after  the  third  year  for  an  amount  depending  upon 
the  size  and  character  of  the  policy  and  its  age.  Actu- 
aries and  other  competent  judges  have  predicted  that 
these  guaranteed  values  instead  of  stimulating  the  sur- 
render of  policies  will  influence  the  assured  to  hold  fast 
to  their  assurance,  first  because  they  know  that  the  as- 
surance has  a  definite  guaranteed  surrender  value,  and 
second,  because  a  glance  at  the  table  will  show  them  that 
this  value  is  constantly  growing  larger  as  the  policy 
grows  older.  It  is  to  be  hoped  that  experience  will  prove 
the  truth  of  this  prediction. 

For  further  particulars  agents  are  referred  to  the 
pamphlets  describing  the  G.  C.  V.  policy  in  all  its  details. 


SUMMARY. 


NEW  GUARANTEED  CASH- VALUE  POLICY. 

THREE    PER   CENT.    RESERVE. 
(WITH   PROFITS — A  DEFERRED  DIVIDEND   POLICY.) 

Forms:  Life,  15  or  20  Year  Period. 

10  Payment  Life,  15  or  20  Year  Period. 

15  Payment  Life,  15  or  20  Year  Period. 

20  Payment  Life,  20  Year  Period. 

10  Year  Endowment,  10  Year  Period. 

15  Year  Endowment,  15  Year  Period. 

10  Payment,  20  Year  Endowment,  20  Year 

Period. 

20  Year  Endowment,  20  Year  Period. 
25  Year  Endowment,  20  Year  Period. 
30  Year  Endowment,  20  Year  Period. 
This   has  become  the   Society's   standard  policy.     It 
participates  in  Surplus  apportionment  at  the  end  of  a  de- 
ferred dividend  period,  but  not  prior  thereto. 

FEATURES  OF  THIS   NEW  FORM. 

The  following  privileges  have  been  included  in  this 
contract : 

1.  Automatic  Surrender  Values  in  Paid-up  Assurance, 
which   take   effect  without  action  on   the  part   of   the 
Assured;  but  if  the  policy  becomes  automatically  Paid- 
up,  the  Assured  can  at  any  time  secure  the  Cash  Value 
instead. 

2.  A  Value  in  Extended  Term   Assurance  is  incor- 
porated in  the  policy.     (See  policy  for  conditions.) 

3.  The  entire  3  per  cent.   Reserve  is  guaranteed   in 
Cash  as  a  Surrender  Value  after  the  loth  year. 

DIVIDEND    ACCUMULATION. 

The  advantages  of  the  deferred  dividend  policy  need 
no  demonstration  here,  but  it  may  be  pointed  out  that 
the  ultimate  cost  of  assurance  is  minimized  by  the  Ac- 
cumulation system  of  paying  dividends.  The  Cash  set- 
tlements on  the  Society's  20  Year  policies  now  maturing 
represent  the  Accumulation  at  a  high  rate  of  compound 
interest  of  the  excess  of  premiums  over  the  cost  of  as- 


surance  as  determined  by  the  Society's  experience.  The 
20  Year  Endowment  returns  show  naturally  the  highest 
percentage  of  profits  because  of  the  greater  gains  re- 
sulting from  the  higher  premiums. 

SURPLUS   APPORTIONMENT. 

At  the  end  of  the  Accumulation  Period  a  Cash  Divi- 
dend is  declared,  consisting  of  the  policy's  full  share  of 
Surplus  Profits,  as  determined  by  the  Actuaries  of  the 
Society,  and  several  options  are  then  given  to  the  as- 
sured, from  which  to  select  a  settlement.  An  Ordinary 
Life  Policy  is  thus  given  one  of  the  chief  advantages 
of  an  Endowment,  or  of  a  Limited  Payment  Life  Policy, 
if  the  Cash  Value  in  the  former  case  or  Paid-up  As- 
surance in  the  latter  case  is  selected;  although  the 
amounts  will,  of  course,  be  smaller  than  if  the  Endow- 
ment or  Limited  Payment  premiums  had  been  paid. 

GUARANTEES. 

The  Loan,  Cash  and  Automatic  Paid-up  Assurance 
Values,  and  the  Extended  Term  Assurance  Periods  are 
written  in  all  the  forms  of  this  policy,  and  commence 
with  the  end  of  the  third  assurance  year. 

The  Extended  Term  Assurance  is  conditioned  upon 
the  selection  of  the  option  within  thirty  days,  or,  with 
satisfactory  evidence  of  good  health,  within  one  year. 
The  policy  may  be  reinstated  at  any  time  after  lapse, 
on  proof  of  good  health,  and  payment  of  overdue  pre- 
miums and  any  indebtedness  to  the  Society,  with  5  per 
cent,  interest  per  annum. 

A  grace  of  thirty  days  is  provided  in  the  payment  of 
all  premiums  after  the  policy  has  actually  gone  into 
force. 

Loans  may  be  obtained  during,  instead  of  at  the  end 
of,  the  respective  years,  if  the  full  premium  for  the  year 
has  been  paid.  Such  loans  are  subject  to  the  payment 
of  interest  at  the  rate  of  5  per  cent,  in  advance. 

ANNUITY    AND    INSTALMENT    OPTIONS. 

The  Assured  may  require  the  Society  to  make  pay- 
ment to  the  Beneficiary,  either  in  a  Life  Annuity  or  in 
Equal  Annual  Instalments  for  a  given  number  of  years. 
If  the  Instalment  method  is  selected,  the  number  of 
instalments  chosen  may  at  any  time  be  changed  by  the 
Assured,  who  may  also  either  grant  or  withhold  the 


privilege  of  commutation.  The  first  instalment  will  be 
paid  upon  maturity  of  the  policy,  and  subsequent  instal- 
ments annually  thereafter,  on  the  basis  of  the  following 
table,  which  shows  the  Instalment  Values  for  each  One 
Thousand  Dollars  of  original  Single  Sum  Assurance: 
$1,060.00  in  5  Annual  Instalments  of  $212.00  each. 


or  1,138.20  in  10 

or  1,219.95  in  15 

or  1,305.20  in  20 

or  1,394-00  in  25 

or  1,485.90  in  30 

or  1,680.00  in  40 

or  1,886.50  in  50 


113-82 

?I>3£ 
65.26 

5576 
49-53 
42.00 
3773 


CONTROL  OF   POLICY. 

The  right  to  change  the  Beneficiary  at  any  time  is  re- 
served to  the  Assured,  who  thus  retains  the  entire  con- 
trol of  the  Policy,  provided  it  is  not  then  assigned. 

WAR   SERVICE   SIMPLIFIED. 

By  the  simple  act  of  mailing  to  the  Society  a  regis- 
tered letter,  the  Assured  becomes  a  member  of  the  So- 
ciety's Yearly  War  Class,  and  may  at  once  engage  in 
War  Service,  under  conditions  explained  in  Policy. 

RETURN  OF  PREMIUMS. 

Guaranteed  Cash  Value  Policies  may  be  issued  with 
the  Society's  guarantee  to  return  all  tabular  premiums 
received,  in  addition  to  the  face  of  the  Policy,  if  death 
occurs  during  a  Deferred  Dividend  Period  of  fifteen 
or  twenty  years.  The  premium  rates  are  necessarily 
somewhat  higher  upon  these  forms  of  contract  than  on 
ordinary  plans. 

EXTENDED  ASSURANCE  ON  THE  ENDOWMENT  FORM. 

If  an  Endowment,  after  being  in  force  for  a  number  of 
years,  is  surrendered  for  Extended  Assurance,  the  policy 
will  be  extended  for  a  period  indicated  in  the  tables  of 
Surrender  Values.  If  this  period  extends  to  the  end 
of  the  Endowment  period  the  assurance  will  cease  at 
the  end  of  the  period,  and  the  assured,  if  living,  can 
draw  in  cash  the  amount  stipulated  in  the  last  column 
of  the  tables.  If  the  Extended  Period  ends  before  the 
termination  of  the  Endowment  Period,  the  assurance 
ceases,  and  no  cash  will  be  paid. 


HOW  TO   SELL  ASSURANCE.  33 


CHAPTER  VI. 

THE   INDEMNITY  POLICY. 

The  Indemnity  Policy  is  a  G.  C.  V.  contract,  and  em- 
bodies all  the  guarantees  and  advantages  of  the  G.  C.  V. 
Policy;  and  in  consideration  of  a  slight  increase  in  the 
premium  rate,  a  mortuary  dividend  of  25  per  cent,  of 
all  tabular  premiums  paid  is  guaranteed  in  the  event  of 
the  death  of  the  assured  before  the  completion  of  the 
Accumulation  Period.  For  example,  the  annual  pre- 
mium for  $1,000,  at  age  35,  is  $28.86.  If  such  a  policy 
is  issued  with  an  accumulation  period  of  twenty  years, 
and  if  the  assured  should  die  during  the  tenth  year  he 
will  have  paid  $288.60,  and  the  beneficiary  will  receive, 
in  addition  to  the  $1,000  of  assurance,  a  dividend  of 
$72.15,  or  one-quarter  of  the  amount  paid  in  premiums. 
If  death  should  occur  during  the  twentieth  year  the  as- 
sured will  have  paid  $577.20  in  premiums,  and  the  bene- 
ficiary will  receive  $1,000,  together  with  a  dividend  of 
$144.30.  But  if  the  assured  is  living  at  the  end  of  the 
period  the  promise  to  pay  this  mortuary  dividend  of  25 
per  cent,  will  expire,  and  in  lieu  thereof  the  assured  will 
receive  his  full  share  of  surplus  profits  as  computed  by 
the  Actuaries. 

The  Indemnity  Policy  is  one  of  the  best  contracts  to 
meet  competition  with  companies  that  advocate  annual 


34  HOW  TO   SELL  ASSURANCE. 

dividends.  Under  the  Indemnity  Policy  a  dividend  is 
certain  whether  life  is  long  or  short;  and  the  mortuary 
dividend  guaranteed  during  the  accumulation  period  is 
a  definite  amount,  namely,  25  per  cent,  of  the  premiums 
paid;  whereas  the  policy's  share  of  surplus,  if  in  force 
at  the  end  of  the  period,  is  likely  to  be  considerably  more 
than  the  sum  of  the  dividends  which  would  have  been 
paid  if  the  policy  had  been  issued  on  the  Annual  Divi- 
dend form. 

If  a  customer  is  attracted  by  the  Indemnity  form  of 
policy  because  of  its  25  per  cent,  dividend  during  the 
accumulation  period,  let  the  agent  remember  that  the 
20  Year  Endowment  Bond  has  equivalent  advantages, 
and  is  likely  to  prove  more  attractive  in  most  cases  than 
the  Indemnity,  if  the  Endowment  form  is  desired.  Of 
course,  if  a  man  wishes  an  Ordinary  Life  or  a  Limited 
Payment  Life  Policy  with  a  mortuary  dividend,  he  must 
take  an  Indemnity  Policy,  because  the  Endowment  Bond, 
as  its  name  indicates,  is  necessarily  an  Endowment  con- 
tract and  could  not  be  issued  on  the  Life  form. 


SUMMARY. 

INDEMNITY    POLICY. 

THREE  PER  CENT.   RESERVE. 

This  policy  has  all  the  Privileges  of  the  new  G.  C.  V. 
contracts,  and  in  addition  thereto  A  RETURN  OF  25 
PER  CENT.  OF  ALL  TABULAR  PREMIUMS  paid 
if  death  occurs  during  the  accumulation  period,  pro- 
vided payment  of  premiums  is  continued  until  the  date 
of  such  death. 

The  Guaranteed  Loan  and  Surrender  Values  in  Cash, 
Paid-up  or  Extended  Assurance,  and  the  Dividend,  the 
total  Cash  Value  and  the  total  Paid-up  Value,  will  be 
the  same  as  under  a  New  Guaranteed  Cash  Value  Policy 
of  similar  period  and  age. 


36  HOW  TO   SELL  ASSURANCE. 


CHAPTER  VII. 

INSTALMENT  ASSURANCE. 

The  man  who  leaves  his  family  at  his  death  a  capital 
sufficient  for  their  support  has  not  performed  his  whole 
duty.  Many  a  family  left  with  an  ample  capital  have  lost 
it  in  whole  or  in  part  because  of  their  lack  of  business  ex- 
perience, or  because  they  have  taken  bad  advice,  or  be- 
cause they  have  spent  it  instead  of  investing  it  and  living 
on  its  income.  A  man  may  assure  his  life  for  an  amount 
sufficient  to  supply  all  the  needs  of  those  dependent  on 
him,  but  if  that  assurance  is  paid  in  one  lump  sum  the 
money  is  often  wasted  or  lost  by  an  ignorant  wife,  or 
a  youthful  daughter,  or  a  spendthrift  son.  This  danger 
may  be  avoided  if  the  policy  is  made  payable  in  equal  an- 
nual instalments;  and  most  of  the  policies  issued  by  the 
Equitable  may  be  paid  in  instalments  if  the  assured  so 
elect.  He  can  have  the  contract  so  drawn,  moreover,  that 
the  beneficiary  shall  be  forced  to  draw  the  money  in  in- 
stalments and  in  no  other  way ;  or  he  can  leave  it  optional 
with  the  beneficiary  to  draw  the  money  in  instalments 
or  to  commute  the  instalments  either  at  the  beginning  or 
later  on,  and  thus  receive  the  total  amount  due  in  one 
lump  sum. 

The  advantage  of  the  instalment  settlement  is  two-fold. 
It  prevents  waste  or  loss,  as  already  explained,  and  in 


HOW  TO   SELL  ASSURANCE. 


37 


addition,  the  amount  paid  will  be  considerably  more  than 
would  be  the  case  if  the  amount  due  were  paid  in  one 
lump  sum  in  advance ;  the  increase  in  the  total  depend- 
ing1 on  the  number  of  instalments  selected.  A  $10,000 
policy,  for  example,  payable  in  10  annual  instalments 
would  amount  to  $11,382  (i.e.,  ten  instalments  of  $i,- 
138.20  each),  whereas  a  $10,000  policy  payable  in  fifty 
instalments  would  amount  to  $18,865  (*-*•»  fifty  instal- 
ments of  $377.30  each).  The  following  table  shows  the 
values  of  one  thousand  dollars  payable  in  instalments : 


$1,138.20  in  10  Annual  Instalments  of  $113.82  each 


or 
or 
or 
or 
or 
or 


1,219.95  m  15 

1,305.20  in  20 

1,394.00  in  25 

1,485.90  in  30 

1,680.00  in  40 

1,886.50  in  50 


£3 

5576 
49-53 
42.00 

37-73 


There  is  one  fact  regarding  an  ordinary  policy  payable 
in  instalments  which  deserves  the  special  attention  of  the 
agent,  and  that  is  that  when  the  final  instalment  has  been 
paid  the  transaction  is  closed.  Now,  the  agent  will  often 
find  a  customer  who  will  say :  "  My  wife,  or  daughter, 
for  whom  I  wish  to  provide  may  outlive  her  expectation, 
and  if  I  take  a  policy  payable  in  twenty  instalments  and 
she  should  live  for  twenty-five  or  thirty  years  after  my 
death,  her  income  will  be  cut  off  during  the  last  five  or 
ten  years  of  her  life."  To  meet  this  objection  the  Society 
issues  a  special  form  of  policy  payable  in  twenty  instal- 
ments, under  which  it  is  stipulated  that  in  consideration 
of  an  appropriate  increase  in  premium  the  instalments 


38  HOW  TO   SELL  ASSURANCE. 

shall  continue  after  the  twenty  payments,  during  the  life- 
time of  the  beneficiary.  In  other  words,  twenty  instal- 
ments are  guaranteed  in  any  case,  but  if  life  continues, 
the  contract  becomes  a  life  annuity,  and  the  instalments 
continue  until  death  intervenes.  This  policy  is  called  the 
Continuous  Instalment  Policy,  and  is  described  in  the 
following  chapter. 


HOW  TO   SELL  ASSURANCE.  39 


CHAPTER   VIII. 

THE    CONTINUOUS    INSTALMENT     POLICY. 

There  are  many  people  who,  if  properly  approached, 
can  be  interested  at  once  in  the  Continuous  Instalment 
Policy.  It  is  an  eminently  sound  contract.  It  is  a  good 
contract  to  talk,  even  if  you  end  by  selling  some  other 
form.  Its  chief  strength  is  in  the  fact  that  it  guarantees 
absolute  lifelong  support  to  the  beneficiary,  even  if  he  or 
she  should  live  to  be  as  old  as  Methuselah.  The  income 
which  it  provides  cannot  be  diverted  from  its  legitimate 
object.  It  cannot  be  wasted,  or  stolen,  or  lost.  It  is 
unshrinkable.  It  must  be  paid,  and  will  be  paid  as  cer- 
tainly, and  as  regularly,  as  one  year  succeeds  another. 

As  the  policy  will  be  paid  in  instalments,  the  premium 
rate  is  moderate,  considering  the  aggregate  amount  of 
the  assurance  and  considering  the  fact  that  the  instal- 
ments will  continue  if  life  extends  beyond  the  regular 
instalment  period. 

It  is  an  excellent  policy  for  a  capitalist  who  wishes  to 
make  a  fixed  and  distinct  provision  for  each  one  of  his 
children  or  grandchildren.  It  is  an  excellent  way  for  a 
man  to  provide  for  some  distant  relative  or  other  depend- 
ent whom  he  wishes  to  support  without  infringing  upon 
the  capital  which  he  wishes  to  leave  intact  to  his  direct 
heirs.  I  can  illustrate  this  by  an  experience  of  my  own. 


40  HOW  TO   SELL  ASSURANCE. 

A  friend  of  mine  left  a  sum  of  money  to  me  in  trust  at 
his  death  for  the  support  of  a  young  woman  who  had 
been  his  wife's  maid.  The  sum  was  not  large,  but  the 
investment  of  it,  and  the  responsibility  of  employing  it 
in  accordance  with  what  I  believed  to  be  the  intention  of 
the  donor,  has  been  difficult.  At  times  I  have  been  em- 
barrassed between  what  I  have  believed  to  be  the  wishes 
of  the  donor  and  the  desires  of  the  beneficiary.  In  addi- 
tion to  this,  the  sum  thus  set  aside  reduced  the  amount 
of  my  uncle's  estate  and  lessened  to  that  extent  the  re- 
ceipts of  his  direct  heirs.  Every  agent  of  the  Equitable 
will  see  at  a  glance  how  much  more  economically  and 
effectively  this  provision  could  have  been  made  if  my 
uncle  could  have  taken  a  Continuous  Instalment  Policy. 

Every  good  agent,  I  suppose,  learns  in  advance  all 
he  can  about  the  man  he  intends  to  solicit  for  assurance. 
To  sell  the  Continuous  Instalment  Policy  this  is  essen- 
tial, unless  you  are  willing  to  waste  a  great  deal  of  time 
"  barking  up  the  wrong  tree." 

Before  soliciting  a  man  to  assure,  find  out  all  you 
can,  not  only  about  himself,  his  business,  and  his  financial 
situation,  but  how  many  children  he  has ;  whether  boys 
or  girls ;  what  their  ages  are ;  what  sort  of  a  wife  he  has, 
and  whether  there  are  any  persons  dependent  on  him 
who  are  not  members  of  his  immediate  family.  If  you 
find  that  a  man  is  unmarried,  seek  to  discover  if  he  is 
helping  financially  some  one  who  would  suffer  in  the 
event  of  his  death. 

Try  to  put  yourself  in  the  position  of  the  family  phy- 


HOW  TO   SELL  ASSURANCE.  41 

sician  who  has  felt  his  patient's  pulse,  listened  to  his 
heart,  looked  at  his  tongue,  taken  his  temperature,  etc., 
and  who  can  therefore  write  a  prescription  that  will  fit 
the  case. 

Many  agents  tire  a  man  out  before  they  get  down  to 
business;  or  so  confuse  his  mind  by  talking  in  the  air, 
that  no  distinct  impression  is  made  on  his  mind,  and  no 
influence  is  exerted  on  his  will.  The  successful  agent 
is  the  one  who  offers  the  right  policy  to  the  right  man 
in  such  a  way  that  he  sees  instantly  that  it  is  appropri- 
ate to  his  own  particular  circumstances  and  needs,  in 
which  case  he  will  often  be  prepared  to  sign  the  appli- 
cation almost  before  he  is  asked  to  do  so. 

Let  me  illustrate.  Assume  that  I  have  learned  that 
Mr.  Brown  is  42  years  of  age,  does  business  with  the 
First  National  Bank  of  his  town  (the  strongest  corpora- 
tion with  which  he  has  direct  dealings),  has  a  good  in- 
come but  no  capital,  and  that  his  only  dependent  is  a 
daughter  18  years  of  age.  With  this  information,  I  say 
to  Mr.  Brown,  "  Would  you  be  willing  to  invest  $696.00 
with  the  First  National  Bank,  if  such  an  investment  would 
yield  after  your  death  a  certain  income  of  $1,000  a  year, 
payable  to  your  daughter  for  life?"  If  Mr.  Brown  has 
been  trying  to  lay  up  capital  for  the  protection  of  his 
daughter,  and  like  ninety-nine  men  out  of  a  hundred 
similarly  situated  has  not  succeeded,  he  will  be  interested 
in  such  a  question,  and  may  be  willing  to  make  an  ap- 
pointment to  look  into  the  matter  at  leisure,  giving  me  an 
opportunity  of  explaining  that  if  he  can  spare  this  small 


42  HOW  TO   SELL  ASSURANCE. 

sum  from  his  income  this  year  he  can  easily  spare  the 
same  amount  next  year,  and  that  if  he  would  be  willing 
to  invest  this  small  amount  annually  with  the  First  Na- 
tional Bank  he  will  run  no  risk  in  investing  it  in  "  the 
strongest  company  in  the  world,"  and  that  if  he  does  so 
invest  it  with  the  Equitable,  taking  a  Continuous  Instal- 
ment Policy,  he  can  certainly  provide  for  the  future  of 
his  daughter  without  pinching  himself  in  the  effort  of 
laying  by  enough  money  to  yield  an  income  sufficient  for 
her  support;  an  effort  which  would  prove  vain  in  the 
event  of  his  early  death. 

You  can  interest  a  good  many  people  in  this  policy  by 
calling  attention  to  the  fact  that  the  contract  is,  so  to 
speak,  an  interchange  of  annuities.  Take,  for  example, 
a  policy  for  $20,000,  issued  to  an  applicant  at  age  42  for 
the  benefit  of  a  person  whose  age  is  18.  Such  a  policy, 
20  A.  P.  form,  will  require  the  payment  of  a  premium, 
or  annuity,  of  $876.60,  which  annuity  will  necessarily 
cease  after  twenty  premiums,  or  $17,532  have  been  paid. 
Now  the  annuity,  which  will  be  paid  by  the  Society,  on 
the  other  hand,  is  not  only  a  larger  amount,  $1,000,  but 
must  necessarily  be  paid  during  a  period  of  twenty  years, 
making  a  total  of  $20,000,  and  if  the  beneficiary  survives 
that  period  the  amount  will  be  increased  by  $1,000  for 
each  year  of  such  survival. 


SUMMARY. 

CONTINUOUS   INSTALMENT   POLICY, 
WITH  GUARANTEED  VALUES. 

THREE  PER  CENT.  RESERVE. 
(WITH  PROFITS — A  DEFERRED  DIVIDEND  POLICY.) 

Forms :  Ordinary  Life,  15  or  20  Year  Period. 
10  Payment  Life,  15  or  20  Year  Period. 
15  Payment  Life,  15  or  20  Year  Period. 
20  Payment  Life,  20  Year  Period. 
This  Policy  provides  that  at  the  death  of  the  Assured 
the  Society  will  issue  an  ANNUITY  BOND  guarantee- 
ing the  payment  of  the  amount  of  the  assurance  in  twen- 
ty equal  annual  Instalments,  and  also  providing  that  like 
Instalments  will  be  paid  every  year  as  long  as  the  Bene- 
ficiary lives,  no  matter  how  long  that  may  be. 

THE    PREMIUM    RATE. 

The  premium  rate  depends  on  the  age  of  the  Bene- 
ficiary as  well  as  on  the  age  of  the  Assured,  but  the 
Beneficiary  is  not  required  to  pass  a  medical  examina- 
tion. 

REDUCTION    OF   PREMIUM    IN    CASE    OF    DEATH,    OR    CHANGE 
OF    BENEFICIARY. 

If  Beneficiary  dies  before  the  Assured,  or  upon  sub- 
stitution of  a  new  Beneficiary  for  the  one  originally 
named  in  the  Policy,  the  premium  will  be  reduced  as 
stated  in  the  policy. 

CHANGE   OF   BENEFICIARY. 

The  privilege  of  changing  the  Beneficiary  is  granted 
under  this  Policy — but — if  this  privilege  is  exercised 
the  Instalments  will  be  paid  for  twenty  years  only  and 
not  during  the  life  of  the  new  Beneficiary,  but,  as  stated 
in  the  foregoing  paragraph,  the  premium  will  be  re- 
duced. 


PAYMENT   OF   INSTALMENTS    IN    CASE   OF    DEATH    OF   BENE- 
FICIARY. 

If  the  Beneficiary  should  die  before  the  Assured,  the 
twenty  Instalments  will  be  paid  to  the  executors,  admin- 
istrators or  assigns  of  the  Assured. 

If  the  Beneficiary  outlives  the  Assured,  but  dies  before 
the  end  of  the  twenty  year  period,  the  remaining  Instal- 
ments will  be  paid  to  the  executors  or  administrators 
of  the  Beneficiary. 

OPTIONS   AND    SURPLUS. 

At  the  end  of  the  Accumulation  Period  the  Policy  may 
be  surrendered  by  the  Assured  for  the  entire  Reserve  in 
cash,  and  the  Assured  is  given,  at  that  time,  the  choice 
of  the  usual  OPTIONS. 

At  the  end  of  the  Accumulation  Period,  Surplus  will 
be  apportioned  to  the  Policy  in  addition  to  its  Guaran- 
teed Value. 

PAID-UP  OPTION. 

When  the  Paid-up  Option  is  selected  at  the  end  of 
the  Accumulation  Period,  and  the  Paid-up  Assurance 
exceeds  the  amount  at  risk  under  the  original  Policy, 
the  Policy-holder  may  take  a  Paid-up  Policy  for  the 
amount  at  risk  under  the  original  Policy,  and  draw 
the  cash  value  of  the  excess;  or,  the  Paid-up  Policy 
may  be  issued  to  include  this  excess,  subject  to  a  satis- 
factory medical  examination  and  the  Society's  approval 
of  the  risk. 

SURRENDER  VALUES. 

The  Continuous  Instalment  Policy  grants  Loans  and 
Guaranteed  Values  in  Cash,  Paid-up  Assurance  or  Ex- 
tended Assurance,  increasing  annually  from  the  third 
year.  The  amounts  will  be  stated  in  the  Policy. 

AUTOMATIC   PAID-UP  VALUE. 

The  Surrender  value  in  Paid-up  Assurance  is  auto- 
matic, and  if  no  action  is  taken  by  the  Assured  the  As- 
surance will  immediately  go  into  effect.  But: 

If  the  Policy  becomes  automatically  paid-up,  the  As- 
sured can,  at  any  time,  surrender  it  for  its  cash  value. 


HOW  TO  SELL  ASSURANCE.  45 


CHAPTER   IX. 

JOINT-LIFE    ASSURANCE. 

Joint-life  assurance  is  an  excellent  thing.  But  a  Joint- 
Life  policy  is  almost  an  obsolete  contract.  Nevertheless, 
Joint  Life  premium  rates  are  included  in  the  Society's 
book  of  tables  (in  case  any  old-fashioned  people  prefer 
that  form  of  assurance),  but  a  single  policy  covering  two 
lives  is  cumbersome,  and  the  premium  varies  widely  ac- 
cording to  the  different  ages  of  the  two  participants.  It 
is  far  better  to  take  an  independent  policy  on  each  indi- 
vidual life.  Consider  the  case  of  a  husband  and  wife,  for 
example.  Instead  of  taking  one  policy  covering  both  lives, 
it  is  better  for  the  husband  to  assure  his  life  for  the  bene- 
fit of  the  wife,  and  for  the  wife  to  assure  her  life  for  the 
benefit  of  the  husband.  It  is  the  same  in  the  case  of  a 
partnership.  If  there  are  three  partners,  a  policy  for  the 
benefit  of  the  firm  should  be  issued  on  the  life  of  each 
individual  member,  the  firm  paying  the  premiums  on  all 
three  policies.  Then  if  the  firm  is  dissolved,  a  settlement 
can  be  made  under  which  each  member  can  gain  pos- 
session of  his  own  policy. 

For  the  arguments  in  favor  of  this  form  of  assurance, 
the  reader  is  referred  to  the  pamphlet  on  Partnership 
Assurance  and  to  the  pamphlet  entitled  Joint  Life  As- 
surance. 


SUMMARY. 

JOINT-LIFE   POLICY. 
GUARANTEED  CASH  VALUE  POLICY. 

THREE  PER  CENT.   RESERVE. 
(WITH    PROFITS — A   DEFERRED   DIVIDEND    POLICY.) 

Two  policies  (one  on  each  of  two  lives)  are  prefer- 
able to  a  single  Joint-Life  Policy  on  two  lives.  How- 
ever, the  Society  is  willing  to  issue  Joint-Life  Assurance, 
and  tables  are  issued  which  give  the  premium  rates  and 
guaranteed  cash  values  for  such  policies,  depending  on 
two  lives  and  issued  on  the  Ordinary  Joint-Life  Guaran- 
teed Cash- Value  plan,  with  accumulation  periods  of  15 
or  20  years.  The  loan  values  under  these  policies  are 
the  same  as  the  cash  values.  Note  that  the  paid-up 
values  will  not  be  written  in  the  policy. 

Ages  under  25  are  taken  at  the  age  of  25  only. 


HOW  TO   SELL  ASSURANCE.  47 


CHAPTER  X. 

TERM    ASSURANCE. 

A  fire  policy  is  a  term  policy.  It  runs  for  a  stipulated 
term  of  months  or  years  and  then  becomes  extinct.  If 
you  insure  your  house  for  a  year  and  fail  to  renew  the 
insurance  at  the  end  of  the  year,  and  a  few  days  later 
your  house  burns  to  the  ground,  your  loss  will  be  abso- 
lute and  irreparable.  A  fire  policy  cannot  be  issued  like 
a  life  policy,  to  run  as  long  as  the  building  stands  and 
to  mature  as  soon  as  it  burns  down,  because  it  may  never 
burn  down.  But  the  converse  is  not  true.  A  life  policy 
may  be  issued  for  a  term  of  years,  and  if  death  occurs 
during  the  term,  the  policy  will  be  paid.  Whereas,  if  the 
assured  is  living  at  the  end  of  the  term,  the  policy  expires 
and  the  assurance  becomes  extinct.  Such  a  transaction 
is  altogether  legitimate,  but  it  is  seldom  desirable,  for 
this  reason — every  man  must  die  sooner  or  later,  and 
every  policy  that  is  not  a  term  policy,  if  kept  in  force, 
must  mature  some  day.  Hence  it  is  far  better,  in  the 
vast  majority  of  cases,  for  a  man  who  wishes  the  pro- 
tection of  life  assurance  during  a  temporary  period  to 
take  a  regular  Life  or  Endowment  Policy ;  for  after  the 
temporary  risk  is  over,  the  policy  will  continue  to  be  a 
valuable  investment,  and  even  if  it  never  yields  a  return 


48  HOW  TO  SELL  ASSURANCE. 

to  the  assured  himself,  will  inevitably  enhance  the  value 
of  his  estate. 

In  the  heat  of  competition  the  principal  companies 
have  all  inserted  in  most  of  their  policies  a  clause  giving 
the  assured  the  choice  of  surrendering  his  policy  for  cash 
or  paid-up  assurance,  or  of  continuing  it  for  its  full 
amount,  for  a  short  term,  after  which,  if  he  is  living,  the 
contract  will  become  extinct.  Now,  if  a  man  is  forced 
to  surrender  a  running  policy  issued  by  any  solvent 
and  properly  managed  company,  let  him  think  twice 
before  he  selects  a  settlement  on  the  basis  of  extended 
term  assurance.  It  is  a  method  of  settlement  which 
is  alluring  to  the  uninitiated,  but  in  ninety-nine  cases 
out  of  a  hundred  it  is  disappointing  in  the  long  run ; 
and  if  a  man  must  abandon  his  policy,  it  is  usually 
infinitely  better  for  him  to  surrender  it  for  paid-up 
assurance,  or  even  for  its  value  in  cash. 

There  is,  however,  a  form  of  term  policy  which  is  not 
open  to  all  the  objections  that  apply  to  ordinary  term 
assurance,  and  that  is  for  the  very  good  reason  that  it 
is  a  term  policy  which  can  be  renewed.  Moreover,  if 
issued  by  the  Equitable,  it  may  at  any  time  be  exchanged 
for  any  one  of  the  Society's  permanent  contracts  of  as- 
surance. This  policy  will  be  dealt  with  in  the  next 
chapter. 


HOW  TO   SELL  ASSURANCE.  49 


CHAPTER  XL 

THE   YEARLY    RENEWABLE    TERM    POLICY. 

Use  the  Renewable  Term  Policy  to  capture  a  man  who 
is  undecided,  or  who  wants  to  wait  until  he  can  afford  to 
apply  for  a  large  policy. 

Show  him  the  clause  on  page  270  of  your  Blue  Book, 
which  begins :  "  A  renewable  term  policy  may  be  ex- 
changed at  any  time,  without  medical  examination,"  etc. 

If  you  can  induce  him  to  take  such  a  policy  you  can 
keep  him  on  the  string,  and  before  the  end  of  the  year, 
or  at  least  at  an  early  period,  may  convince  him  that  it 
is  to  his  interest  to  exchange  it  for  a  participating  policy 
with  guarantees  and  options. 

No  intelligent  agent,  I  am  sure,  ever  advocates  the 
wholesale  issuance  of  assurance  on  the  Renewable  Term 
plan,  but  every  agent  does  well  to  remember  that  he  has 
this  form  of  contract  (issued  by  the  strongest  company 
in  the  world)  in  reserve. 

It  may  often  be  used  as  a  stepping  stone  to  carry  the 
applicant  dry-shod  over  the  assessment  swamp  so  as  to 
land  him  safely  on  the  solid  ground  of  G.  C.  V.  Assur- 
ance. When  an  applicant  talks  about  the  cheapness  of  as- 
sessment assurance,  open  your  Blue  Book  at  the  Yearly 
Renewable  Term  table.  If  he  is  a  young  man,  by  placing 
a  sheet  of  paper  over  the  lower  part  of  the  table,  you 


50  HOW  TO   SELL  ASSURANCE. 

can  show  him  that  at  his  age  the  Equitable  will  assure 
him  at  a  very  low  premium.  Then  removing  the  sheet 
of  paper,  call  his  attention  to  the  fact  that  the  premium 
increases  from  year  to  year.  Then  explain  that  this  is 
the  only  scientific  basis  on  which  a  man  can  obtain  life 
assurance  at  anything  like  cost  price  from  the  beginning. 
Explain  to  him  that  the  premium  charged  at  age  21 
grants  him  assurance  practically  at  cost  price,  and  that 
this  being  so,  the  cost  of  the  assurance  at  an  older  age 
is  necessarily  higher;  that  assessment  assurance  is  (not 
to  put  too  fine  a  point  on  it)  really  a  confidence  game; 
that  men  ignorant  of  the  science  of  life  assurance  are 
deluded  into  the  belief  that  if  they  assure  at  a  net  rate 
at  age  21  the  company  will  be  able  to  continue  to  assure 
them  at  the  same  cost  after  they  get  to  be  50  or  60,  when 
their  expectation  of  life  will  be  much  shorter.  Explain 
that  all  this  is  covered  n'p  in  an  assessment  contract,  and 
in  the  documents  issued  by  assessment  companies.  You 
can  make  it  clear  to  the  average  business  man  by  il- 
lustrations of  this  kind  that,  under  the  assessment  plan, 
one  of  three  things  is  inevitable ;  ( I )  either  an  adequate 
premium  must  be  charged  from  the  start,  and  if  so,  the 
assurance  is  placed  on  a  legitimate  basis,  and  if  it  is  thus 
brought  up  to  a  legitimate  basis  the  rate  will  be  as  high 
as  in  a  regular  company,  and  it  is  certainly  better  to  take 
it  from  a  substantial  company  with  an  adequate  reserve 
and  surplus,  which  is  able  to  guarantee  its  contracts,  in- 
stead of  with  a  concern  which  may  not  be  able  to  carry 
out  even  legitimate  contracts  because  it  is  loaded  down 


HOW  TO   SELL  ASSURANCE.  51 

with  old  obligations  taken  on  a  false  basis;  or  (2)  the 
lower  the  premium  in  the  beginning  the  higher  it  will 
necessarily  become  in  the  end:  the  deficiency  in  the 
beginning  must  be  compensated  for  later  on;  or  (3)  if 
the  concern  stands  by  its  early  promises  and  fails  to  in- 
crease its  assessments,  the  organization  itself  will  as  cer- 
tainly fail  as  that  two  and  two  do  not  make  six." 


SUMMARY 


YEARLY   RENEWABLE   TERM    POLICIES. 

The  premiums  on  yearly  renewable  term  policies  are 
adjusted  to  the  cost  of  assurance  during  each  year  sepa- 
rately, and  hence  must  necessarily  increase  yearly  with 
advancing  age.  For  instance,  on  a  policy  issued  at  age 
35  for  $10,000  the  premium  would  be  as  follows : 

First  year,      ....      Age  35,  $134-20 

Second  "  36,     136.30 

Third  .      .      .      .  37,     138.50 

etc.,  etc.,  etc. 

The  assurance  is  for  the  whole  of  life,  or  as  long  as 
shall  be  desired,  and  no  medical  re-examination  will  be 
required  in  renewing  from  year  to  year  except  in  case 
of  lapse  of  policy.  The  premium  increases  each  year 
until  the  age  of  65  is  attained,  when  the  full  ordinary 
life  rate  at  that  age  must  be  paid,  less  any  dividend  that 
may  then  be  apportioned  by  the  Society  on  the  expira- 
tion of  the  Renewable  Term  Policy. 

A  Renewable  Term  Policy  may  be  exchanged  at  any 
time  while  in  force,  upon  the  simple  request  of  the  as- 
sured without  medical  examination,  for  any  other  form 
of  policy  then  issued  by  the  Society,  providing  that  the 
amount  assured  be  no  more  than  in  the  old  policy  then 
given  up.  In  case  of  such  change,  the  first  premium  on 
the  new  policy  may  be  lessened  by  any  dividend  which 
may  then  be  apportioned  by  the  Society  upon  the  Re- 
newable Term  Policy  then  surrendered. 

A  Renewable  Term  Policy  has  no  surrender  value, 
and  no  dividend  will  be  declared  except  in  case  of 
changing  to  another  form  of  policy  as  explained  above. 


HOW  TO   SELL  ASSURANCE.  53 


CHAPTER   XII. 

ANNUITIES. 

There  are  many  men  in  the  community  who  have  laid 
by  capital,  sufficient  as  they  have  heretofore  believed,  for 
the  future  protection  of  their  families,  but  who  now  are 
apprehensive  because  they  realize  that  if  they  are  taken 
away,  an  amount  of  capital  which  a  few  years  ago  would 
have  yielded  an  adequate  income  may  now  be  insufficient 
for  the  comfortable  support  of  their  families. 

Such  men,  if  properly  approached,  can  easily  be  in- 
terested in  Annuities. 

No  form  of  investment,  when  made  with  such  a  com- 
pany as  the  Equitable,  offers  more  lasting  stability.  Re- 
member that  there  can  be  no  shrinkage  in  the  income  from 
an  Annuity.  Wealthy  men  and  others  are  now  turning 
their  attention  more  than  ever  before  to  Annuities — not 
necessarily  to  ordinary  Annuities,  but  to  Survivorship  An- 
nuities (which  are  well  worth  careful  study);  or  to  De- 
ferred Annuities,  to  begin  after  a  term  of  years  under 
which  the  income  in  some  cases  will  be  fifteen,  or  twenty, 
or  twenty-five  per  cent,  or  more.  Or  to  a  Joint-Life  An- 
nuity to  provide  for  a  husband  and  wife,  or  a  father  and 
daughter.  Or  to  an  Immediate  or  Deferred  Annuity 
payable  to  the  investor  as  long  as  he  lives,  but  based  on 
the  life  of  the  wife  or  daughter,  who  will  continue  to  re- 


54  HOW  TO   SELL  ASSURANCE. 

ceive  the  income  after  the  investor's  death  if  she  should 
outlive  him. 

There  are  a  great  many  variations  of  Annuity  con- 
tracts which  adapt  themselves  to  the  different  circum- 
stances of  different  people.  Take  the  case,  for  example, 
of  a  man  who  has  a  wife  but  no  children,  who  applies 
to  the  Equitable  for  a  policy.  We  refuse  to  accept  the 
risk.  Why  should  that  client  be  lost  because  he  is  not 
an  acceptable  risk,  if  his  sole  object  is  to  protect  his  wife 
in  the  event  of  his  death  ?  Why  not  induce  him  to  invest 
in  an  Annuity  based  on  the  wife's  life,  the  same  Annuity 
to  be  paid  for  in  annual  premiums  during  a  period  of 
ten,  fifteen  or  twenty  years?  Take  an  illustration.  Sup- 
pose a  man  43  years  of  age  applies  for  a  20- Payment  Life 
Policy  in  favor  of  his  wife,  40  years  old,  for,  say,  $15,- 
ooo,  premium  $690.60;  total  cost  if  he  lives  during  the 
period,  $13,812.  Such  a  policy,  would  yield  $15,000, 
which  invested  at  4  per  cent,  would  give  the  widow  an 
income  of  $600.  Now,  let  us  assume  that  in  this  case 
the  Equitable  refuses  to  accept  the  risk.  Don't  let  that 
discourage  you.  Why  not  say  to  such  a  man :  "  In  apply- 
ing for  this  policy  you  acknowledge  that  you  can  afford 
to  pay  an  annual  premium  of  at  least  $500.  Now,  if  you 
will  pay  the  Equitable  $500  in  advance,  the  Society  will 
issue  a  contract  (without  any  medical  examination) 
based  on  the  life  of  your  wife,  for  whose  benefit  you 
make  the  investment.  This  amount  will  purchase  an 
Annuity  of  $27.44.  At  the  end  of  the  first  year  you  must 
pay  a  second  premium  of  $500,  less  the  Annuity  bought 


HOW  TO   SELL  ASSURANCE. 


55 


with  the  first  payment.makmg  your  net  payment  $472.56. 
This  second  payment  will  purchase  an  additional  Annuity 
of  $27.81,  which  added  to  the  first  Annuity  makes  $55.25. 
Consequently,  when  your  third  premium  of  $500  falls 
due,  it  will  be  reduced  by  $55.25,  and  you  will  only  have 
to  pay  a  net  premium  of  $444.75. 

Here  is  the  computation  in  tabular  form  carried  out 
to  the  end  of  the  period : 

COMPOUND  ANNUITY  TABLE. 

ON    FEMALE    LIFE.      AGE   40. 


YEAR. 

PREMIUM. 

ANNUITY. 

TOTAL  ANNUITY. 

I 

$500.00 

$27.44 

$27.44 

2 

472.56 

27.8l 

55-25 

3 

444-75 

28.18 

83.43 

4 

416.57 

28.60 

112.03 

5 

387.97 

29.03 

I4I.O6 

6 

358.94 

29.51 

170.57 

7 

329.43 

30.01 

200.58 

8 

299.42 

30.54 

231.12 

9 

268.88 

31.11 

262.23 

10 

237.77 

31.72 

293.95 

ii 

206.05 

32.38 

326.33 

12 

173.67 

33.09 

359.42 

13 

140.58 

33.83 

393-25 

14 

106.75 

34-62 

427.87 

15 

72.13 

35.48 

463.35 

16 

36.65 

36.39 

499.74 

17 

.26 

37-37 

537-11 

INCOME. 

18 

37-11 

38.43 

575-54 

19 

75.54 

39-55 

615.09 

20 

115.09 

40.75 

655.84 

Total  gross  payments 

Reduced  by  Annuities  in  nineteen  years  of. 


Making  net  payments  of , 

Subsequent  Annuity  to  wife  for  life. 


$10,000.00 
5,775.36 

$4,224.64 
655-84 


56  HOW  TO   SELL   ASSURANCE. 

"  You  will  see  from  the  above  table  that  the  premiums 
steadily  decrease  from  year  to  year  until  after  a  time 
the  sum  of  the  small  Annuities  exceeds  the  premiums, 
and  instead  of  having  any  premium  to  pay,  the  investor 
will  receive  an  income.  At  the  end  of  the  twenty  years 
he  will  then  have  a  paid-up  Annuity  of  $655.84  a  year, 
payable  (if  he  so  directs)  to  him  as  long  as  he  lives  and 
after  that  for  life  to  his  wife." 

But  perhaps  you  say  the  investor  may  object  that  pos- 
sibly his  wife  may  die  first,  in  which  case  he  would  cease 
to  gain  any  advantage  from  a  contract  based  on  her  life. 
But  the  investor  must  remember  that  a  similar  difficulty 
presents  itself  in  the  case  of  a  life  policy  which  will  never 
be  of  any  personal  advantage  to  him  because  it  will  never 
be  paid  until  he  is  dead.  But  this  is  not  all.  The  as- 
sumptio'n  in  this  instance  is  that  his  investment  is  made 
because  the  husband  wishes  to  make  provision  for  his 
wife  in  case  he  should  be  taken  away  and  unable  to  sup- 
port her.  If,  therefore,  the  wife  dies  first,  he  is  at  once 
relieved  of  the  necessity  of  laying  by  money  for  her  fu- 
ture support. 

Or  your  client  may  object,  "  Suppose  I  should  get  tired 
of  paying  the  premium  before  the  end  of  the  twenty 
years?"  The  answer  is  that  he  can  stop  at  any  time 
without  penalty.  If  he  stops  after  paying  for  eleven 
years,  for  example,  the  Society  will  from  that  time  pay 
$326.33  as  long  as  his  wife  lives. 

Why  then  enter  into  any  contract?  Simply  because 
it  binds  the  Society  to  continue  the  transaction  on  its 


HOW  TO   SELL  ASSURANCE.  57 

present  Annuity  basis.  Otherwise,  if  the  Society  should 
increase  its  Annuity  rates  later  on,  the  cost  to  the  in- 
vestor might  be  increased. 

If  he  wants  the  Annuity  to  provide  for  his  own  old 
age,  he  must  have  it  based  on  his  own  life.  Or  if  he 
wishes  to  cover  both  lives,  he  may  take  two  Annuities 
or  a  joint  life  survivorship  Annuity.  The  opportunity  to 
procure  Annuities  by  making  a  limited  number  of  pay- 
ments would  certainly  be  welcome,  not  only  to  declined 
risks  who  can  secure  regular  assurance  for  their  wives 
and  children,  but  also  to  the  large  number  of  single  men 
and  women  who  do  not  need  or  will  not  take  policies  of 
assurance,  and  who  must  desire  to  provide  an  income 
for  middle  life  and  old  age  out  of  the  savings  of  their 
productive  years. 

For  explanations  of  all  the  various  forms  of  Annuity 
contracts  the  reader  is  referred  to  other  publications. 


58  HOW  TO   SELL  ASSURANCE. 

CHAPTER  XIII. 
THE    DOUBLE    ENDOWMENT. 

In  introducing  this  form,  the  Double  Endowment  pol- 
icy, the  officers  of  the  Society  did  not  expect  that  any 
large  amount  of  business  would  ever  be  written  upon  it. 
It  is,  nevertheless,  a  very  valuable  contract  for  the  Agent 
to  have  at  hand. 

In  the  first  place,  it  is  an  excellent  contract  for  healthy 
young  men  ;  for  they  are  almost  certain  to  win  the  liberal 
cash  reward  offered  for  longevity  and  persistence. 

In  the  second  place,  it  is  an  admirable  contract  for 
those  men  who  are  conscious  of  vigorous  health  and  are 
willing  to  "  gamble  "  on  what  they  have  a  right  to  con- 
sider a  reasonably  certain  venture,  but  where  the  com- 
pany, through  lack  of  information,  or  in  consequence  of 
inaccurate  information,  or  from  a  mistaken  feeling  cf 
doubt  or  timidity,  hesitates  to  assume  the  risk  on  the 
ordinary  basis. 

In  the  third  place,  every  Agent  should  use  the  Double 
Endowment  as  a  decoy  even  if  he  should  never  employ 
it  in  any  other  way.  But  remember  that  such  a  decoy  is 
not  used  for  the  purpose  of  destroying  life,  but  for  the 
purpose  of  protecting  life.  Remember  also  that  the 


HOW  TO  SELL  ASSURANCE.  59 

huntsman  does  not  capture  the  real  ducks  with  his  de- 
coys. The  usefulness  of  the  decoy  ends  as  soon  as  the 
real  ducks  are  lured  within  range;  and  if  the  huntsman 
loses  his  gun,  or  runs  out  of  powder  and  shot,  his  decoys 
are  useless.  If  you  use  this  form,  therefore,  simply  as  a 
decoy,  you  must  be  ready  to  assure  your  man  on  some 
other  form.  Now,  every  Agent  knows  many  young  men 
who  take  absolutely  no  interest  in  assurance,  but  who 
want  to  force  themselves  to  save.  The  curiosity  of  such 
a  man  can  be  awakened  through  a  Double  Endowment 
G.  C.  V.  Policy.  A  man  who  has  just  come  of  age,  for 
example,  can  for  a  premium  of  $85.91  secure  a  twenty- 
year  Endowment  which  will  pay  his  estate  $1,000  in  the 
event  of  his  premature  death.  But  such  a  man  has  no 
right  to  expect  to  die  prematurely.  On  the  contrary,  he 
has  every  expectation  of  outliving  a  period  of  twenty 
years.  In  that  event  under  a  Double  Endowment  he 
would  receive  not  only  the  face  of  the  policy  ($1,000), 
but  the  policy's  full  share  of  surplus-profits,  and  in  addi- 
tion a  further  sum  of  $1,000.  Why  should  a  young  man 
full  of  vitality  and  strength  go  into  the  ordinary  class 
when  he  can  secure  the  guarantee  of  an  enormous  cash 
dividend,  as  a  reward  for  being  a  good  risk  and  for  keep- 
ing his  policy  in  force?  For  such  a  man  this  policy  is 
issued  on  a  most  liberal  basis,  as  you  can  see  by  noting 
how  much  higher  the  premium  would  be  if  he  purchased 
an  Endowment  of  the  ordinary  kind  for  $2,000.  What 
is  true  of  $1,000  is  true  of  $100,000;  and  to  a  man  of 
means  the  doubling  of  a  policy  for  $100,000  at  the  end 


60  HOW  TO   SELL  ASSURANCE. 

of  the  period  is  not  a  small  matter.  In  this  way  the 
Double  Endowment  may  be  used  to  awaken  interest, 
whether  you  actually  sell  it  or  whether  you  switch  the 
applicant  off  to  another  form. 


SUMMARY. 

DOUBLE    ENDOWMENT. 
GUARANTEED  CASH  VALUE  POLICY. 

THREE  PER  CENT.   RESERVE. 

This  policy  is  what  its  name  says — a  Double  Endow- 
ment, guaranteeing  that  if  the  assurance  is  in  force  at 
the  end  of  the  Endowment  Period  the  Society  will  pay 
DOUBLE  THE  FACE  OF  THE  ORIGINAL  POLICY. 

If  the  Assured  dies  before  the  end  of  the  period,  the 
result  is  identically  the  same  as  it  would  be  in  the  case 
of  a  Guaranteed  Cash  Value  Endowment  Policy;  but  if 
the  policy  is  in  force  at  the  end  of  the  Endowment 
Period  he  will  receive  more.  For  example,  if  the  policy 
be  for  $1,000,  the  Assured  will  receive  (i)  the  face  of 
the  policy,  $i,oop,  (2)  the  Surplus  profits  apportioned 
to  his  $1,000  policy  (exactly  the  same  amount  he  would 
receive  if  the  policy  were  a  Guaranteed  Cash  Value 
Endowment  for  $1,000),  and  (3)  an  additional  $1,000, 
making  in  all  twice  the  amount  of  the  policy,  together 
with  the  Surplus  on  the  original  $i,opo. 

It  must  be  noted,  however,  that  Dividends  and  Guar- 
anteed Values  are  on  the  Single  Endowment  Policy 
only.  The  additional  Endowment  is  without  Profits. 
In  other  words,  the  Assured  receives  a  Double  Endow- 
ment, with  the  Surplus  on  a  Single  Endowment. 

If  the  Policy  is  surrendered  during  its  Endowment 
Period  for  a  Paid-up  Endowment,  the  Society  will,  in 
the  event  of  the  death  of  the  Assured  before  the  end  of 
the  period,  pay  the  amount  stipulated  in  the  Policy,  but 
if  the  Assured  be  living  at  the  end  of  said  period,  the 
Society  will  pay  double  the  amount  stipulated  in  the 
Policy. 


62  HOW  TO   SELL  ASSURANCE. 


CHAPTER  XIV. 

THE    ANNUAL    DIVIDEND    POLICY. 

The  Annual  Dividend  Policy  is,  or  ought  to  be,  obso- 
lete. There  are  some  companies,  however,  that  advo- 
cate annual  dividend  assurance,  chiefly,  I  imagine,  be- 
cause the  prominent  companies  do  not  advocate  it.  You 
sometimes  run  across  a  man,  therefore,  who  has  been 
listening  to  the  agent  of  a  company  that  issues  and  ad- 
vocates annual  dividends,  and  if  you  should  say  to  that 
man,  "  The  Equitable  does  not  issue  annual  dividend  pol- 
icies," he  would  conclude  that  your  company  is  lacking 
in  enterprise,  or  is  unwilling  to  accommodate  its  custom- 
ers; or  he  may  suspect  that  there  is  some  advantage 
in  an  annual  dividend  policy  to  the  assured  which  is  dis- 
advantageous to  the  company,  and  which  therefore  large 
and  strong  and  prosperous  companies  can  afford  to  with- 
hold. Hence,  the  shortest  way  out  of  the  difficulty  is  for 
the  Society  to  put  you  in  a  position  where  you  can  say, 
"  Yes,  we  are  ready  to  issue  an  Annual  Dividend  Policy 
on  your  life.  There  is  no  reason  why  if  you  want  that 
kind  of  assurance  you  should  be  forced  to  put  the  strong- 
est company  in  the  world  aside  and  take  the  policy  from 
some  less  prosperous  organization.  If  you  want  an  An- 
nual Dividend  Policy  the  Equitable  will  give  it  to  you. 
But  are  you  sure  that  you  really  want  it?  Why  take 


HOW  TO   SELL  ASSURANCE.  63 

what  is  inferior  when  you  can  get  what  is  superior  ?  It 
is  a  matter  of  indifference  to  the  management.  Remem- 
ber that  the  Equitable  is  conducted  on  the  mutual  plan ; 
that  the  Society  is  simply  an  aggregation  of  policy-hold- 
ers ;  that  the  interests  of  the  policy-holder  and  the  Society 
as  a  whole  are  one ;  that  anything  that  injures  the  policy- 
holder  injures  the  company,  and  anything  that  benefits 
the  policy-holder  benefits  the  company ;  that  the  reason 
we  do  not  recommend  the  Annual  Dividend  Policy  is  be- 
cause our  experience  has  proved  to  us  that  it  is  often 
disappointing  in  the  long  run,  no  matter  by  what  com- 
pany it  is  issued.  The  deferred  dividend  policy  is  an  im- 
provement on  the  Annual  Dividend  Policy,  and  the  great 
popularity  of  modern  life  assurance  is  largely  due  to  the 
introduction  of  a  deferred  dividend  contract  of  assurance 
guaranteeing  at  the  end  of  a  period  of  years  a  dividend 
consisting  of  the  policy's  full  share  of  profits." 

If  a  man  does  not  want  a  deferred  dividend  policy,  it 
maybe  as  well  for  him  to  take  a  Non-Participating  Policy 
as  an  Annual  Dividend  Policy,  although  it  seems  folly 
for  a  man  to  content  himself  with  a  non-participating 
contract  when  he  can  participate  in  the  profits  of  the 
business  of  a  company  conducted  on  the  mutual  plan. 
Although,  of  course,  the  cost  will  be  a  little  more  in  the 
beginning,  he  has  every  reason  to  expect,  in  a  company 
conducted  as  the  Equitable  has  been  administered  for 
forty  odd  years,  that  the  ultimate  cost  of  his  assurance, 
if  issued  on  the  participating  plan,  will  be  as  low  as  it 
is  possible  for  gilt-edged  life  assurance  to  be.  Of  course 


64  HOW  TO   SELL  ASSURANCE. 

it  is  possible  that  a  man  may  chance  to  have  the  good 
luck  to  obtain  cheaper  assurance  from  a  recklessly  con- 
ducted company  that  takes  risks  at  every  turn,  investing 
its  money  in  perilous  ventures  that  yield  high  rates  of 
interest  for  the  time  being,  because  the  policy  may  ma- 
ture before  the  company  gets  into  trouble.  But  the  man 
who  invests  in  life  assurance  as  he  invests  in  other  things 
cannot  expect  to  get  his  assurance  at  less  than  cost  unless 
he  is  willing  to  accept  damaged  goods  or  goods  lacking 
in  strength  and  lasting  qualities. 


ANNUAL  DIVIDEND   POLICIES. 

Annual  Dividend  policies  are  issued  at  the  same 
premium  rate  as  the  Guaranteed  Cash-Value  Policies,  and 
grant  the  same  privileges,  including  loans  and  surrender 
values.  The  essential  difference,  therefore,  is  confined 
to  the  basis  of  apportioning  and  distributing  surplus. 


66  HOW  TO   SELL  ASSURANCE. 


CHAPTER  XV. 

THE    NON-PARTICIPATING    POLICY. 

When  a  man  assures  his  life  in  a  company  conducted 
on  the  mutual  plan  (as  is  the  case  with  the  Equitable), 
and  when  that  company  is  earning  surplus  steadily,  and 
is  paying  liberal  dividends  on  its  policies  (all  of  which 
is  true  of  the  Equitable),  why  should  he  not  have  the 
advantage  of  a  participating  policy,  instead  of  taking 
a  policy  on  which  he  can  never  receive  a  penny  in  divi- 
dends? But  there  are  some  companies  that  make  a 
specialty  of  Non-Participating  Policies,  and  men  who 
have  been  advised  to  apply  for  their  assurance  in  such 
companies  sometimes  insist  upon  a  Non-Participating 
Policy  in  the  Equitable.  It  would  not  do,  therefore,  for 
our  agents  to  refuse  to  issue  such  a  policy,  and  there  are 
some  men  who  are  not  very  particular  about  the  amount 
of  the  premium  they  are  to  pay,  provided  they  can  know 
its  exact  amount  in  advance,  and  that  the  amount  can 
never  vary  under  any  circumstances.  But  the  best  advice 
we  can  give  Equitable  agents  in  this  connection  is  that 
after  offering  a  Non-Participating  Policy  to  a  man  who 
applies  for  a  contract  of  that  kind,  and  after  he  fully 
recognizes  the  fact  that  he  can  obtain  it  from  the  Equi- 
table as  well  as  from  any  other  company,  ask  him  to  sus- 


HOW  TO   SELL  ASSURANCE.  67 

pend  his  judgment  until  he  has  studied  the  advantages 
of  some  of  our  best  contracts,  or  at  least  advise  him  to 
take  the  Non-Participating  Policy  temporarily  with  the 
idea  of  studying  the  subject  carefully  and  perhaps  select- 
ing a  policy  or  bond  with  profits  later  on. 


SUMMARY 


NON-PARTICIPATING  POLICY. 

Non-Participating  Policies,  as  their  name  implies,  do 
not  participate  in  the  profits  earned  by  the  Society,  and 
the  only  returns  to  the  policy-holder,  in  case  of  discon- 
tinuance of  the  policy,  are  those  contained  in  the  tables 
of  guarantees  stated  in  the  policy. 

These  policies  are  issued  on  the  following  forms : 


Ordinary  Life, 
i o- Payment  Life, 
1 5- Payment  Life, 
20-Payment  Life, 
lO-Year  Endowment, 
15-Year  Endowment, 
20-Year  Endowment, 


Ages  21  to  65. 


21 

21 
21 
21 
21 
21 


60. 
60. 

£ 

60. 

55- 


These    policies  will  not  be  issued  at  any  other  ages 
than  thost  given  above. 


HOW  TO   SELL  ASSURANCE.  69 


CHAPTER  XVI. 

CHILD'S    ENDOWMENT. 

There  is  not  much  direct  profit  to  the  agent  in  a  Child's 
Endowment,  but  it  may  prove  very  valuable  to  him  as  an 
entering  wedge.  Some  men,  especially  those  who  have 
been  in  business  life  for  a  number  of  years,  have  been 
pestered  at  one  time  or  another  by  the  importunities  of 
indiscreet  agents — a  class  which  is  happily  becoming 
extinct.  Such  men  may  be  interested  in  a  form  of  invest- 
ment which  is  not,  strictly  speaking,  a  life  assurance  pol- 
icy, and  which  makes  no  heavy  demand  upon  capital  or 
income,  and  yet  which  will  provide  an  adequate  fund  to 
set  a  son  up  in  business,  or  provide  a  marriage  portion 
for  a  daughter.  After  a  man  who  is  the  happy  father 
of  an  infant  boy  or  girl  has  accepted  or  refused  a  Child's 
Endowment,  you  can,  if  you  are  a  master  of  your  trade, 
interest  him  in  an  ordinary  policy  of  life  assurance. 

There  are  two  varieties  of  Child's  Endowment. 

The  "  Child's  Endowment  "  or  "  Simple  Endowment," 
as  it  is  frequently  and  more  correctly  termed,  is  simply 
a  contract  to  pay  a  certain  sum  of  money  at  the  end  of  a 
stated  period  of  years,  in  consideration  of  annual 
premiums  or  a  single  premium,  if  the  person  is  then 
living. 


70  HOW  TO   SELL  ASSURANCE. 

The  policies  are  issued  with  profits  on  the  accumula- 
tion plan,  and,  with  very  few  exceptions,  they  provide 
for  the  return  of  the  premiums  paid  without  interest  in 
the  event  of  the  child's  death  before  the  end  of  the  En- 
dowment period.  They  may,  however,  be  secured  at  a 
somewhat  lower  rate  without  return  of  premiums  in  the 
event  of  death,  but  most  people  taking  such  policies  for 
the  benefit  of  the  child  prefer  the  return  of  premium 
form.  The  contract,  of  course,  is  between  the  Society 
and  the  purchaser  of  the  endowment ;  the  child  not  being 
a  party  to  it,  except  as  beneficiary.  In  fact,  some 
parents  make  the  endowment  payable  to  themselves  so 
that  they  may  give  it  to  the  child  at  maturity  or  withhold 
it  as  they  see  fit  at  that  time.  The  paid-up  surrender 
values  are  upon  the  same  plan  as  on  Limited  Payment 
Life  or  Endowment  policies.  That  is,  as  many  fractions 
of  the  whole  as  the  number  of  premiums  paid  after  the 
third  bears  to  the  whole  number  of  premiums  payable. 
No  medical  examination  is  required  and  application  may 
be  made  on  the  G.  C.  V.  form  with  alterations  to  suit. 

There  is,  however,  another  form  of  so-called  Child's 
Endowment  now  used  by  the  Society.  This  has  been 
quite  recently  adopted  and  is  really  a  regular  Life  or 
Endowment  G.  C.  V.  policy  with  a  special  provision  that 
in  the  event  of  the  death  of  the  child  before  the  end  of 
the  dividend  or  endowment  period,  as  the  case  may  be, 
the  premiums  shall  be  returned  by  the  Society  without 
interest  in  full  of  all  obligations  upon  the  part  of  the 
Society  under  the  contract,  unless  the  child,  on  reaching 


HOW  TO   SELL  ASSURANCE.  71 

fourteen  years  of  age  in  the  case  of  an  Endowment 
policy  with  not  more  than  twenty  years  to  run  or  sixteen 
years  of  age  in  the  case  of  a  Life  policy,  shall  pass  a 
satisfactory  medical  examination  and  be  found  accept- 
able as  a  risk  for  regular  assurance.  Upon  this  form 
the  first  page  of  the  Medical  Examiner's  Report  must  be 
filled  out,  so  that  the  Medical  Directors  may  act  intelli- 
gently and  avoid  holding  out  the  hope  of  full  assurance 
when  the  child  reaches  14  or  1 6  years  of  age,  if,  in  their 
judgment,  such  assurance  will  probably  not  be  granted. 


72  HOW  TO   SELL  ASSURANCE. 


CHAPTER  XVII. 

SOME    IMPORTANT    DISTINCTIONS. 
EXPLANATIONS. 

THE  PRIMARY  FORMS  OF  ASSURANCE. 

There  are  primarily  three  kinds  of  policies  issued  by 
regular  life  assurance  companies,  viz.:  "  Ordinary  Life," 
"  Limited  Payment  Life  "  and  "  Endowment  "  policies. 

An  Ordinary  Life  Policy  provides  for  the  payment  cf 
the  assurance  at  the  death  of  the  life  assured,  and  re- 
quires premiums  to  be  paid  during  his  or  her  lifetime  if 
the  policy  is  continued  in  force. 

A  Limited  Payment  Life  Policy  provides  for  the  pay- 
ment of  the  assurance  at  the  death  of  the  life  assured, 
but  in  consideration  of  the  payment  of  a  higher  rate,  the 
premiums  are  limited  to  a  stipulated  number  of  years. 

An  Endowment  Policy  also  provides  for  the  payment 
of  the  assurance  in  case  of  the  death  of  the  life  assured, 
but  in  consideration  of  a  higher  premium,  not  only  do 
premiums  cease  at  the  end  of  a  stipulated  period,  but 
the  assurance  becomes  payable  during  the  lifetime  of  the 
assured. 

DIVIDENDS. 

In  general,  "  surplus  "  is  that  part  of  the  assets  of  an 
assurance  company  in  excess  of  all  liabilities.  It  is  the 
fund  from  which  dividends  to  policy-holders  are  paid. 
As  soon  as  surplus  has  been  apportioned  by  the  company 
to  the  policy-holder,  it  becomes  a  dividend,  and  may  then 
be  properly  characterized  as  "  profits." 


HOW  TO   SELL  ASSURANCE.  73 

Policies  upon  which  dividends  are  declared  annually 
are  called  Annual  Dividend  Policies.  Policies  upon 
which  no  dividends  are  declared  until  the  end  of  a  stipu- 
lated period  are  called  "Deferred  Dividend  Policies." 
To  this  class  of  assurance  belong  the  following  con- 
tracts : 

The  Guaranteed  Cash-Value  Policy.  Endowment  Bond, 
Double  Endowment,  Indemnity  Policy,  Continuous  In- 
stalment Policy,  Joint  Life  Policy,  and  Gold  Bond.  If 
one  of  these  policies  is  in  force  at  the  end  of  a  specified 
period  a  dividend  is  then  declared  and  paid  to  the  as- 
sured. In  the  case  of  an  Ordinary  Life  Policy,  continued 
in  force  after  the  completion  of  the  period,  surplus  is  ap- 
portioned in  accordance  with  the  terms  of  the  contract. 

Deferred  dividend  policies  are  sometimes  called  "  Ac- 
cumulation "  or  "  Distribution  "  policies,  suggesting  the 
idea  that  dividends  are  deferred  during  a  period  of  ac- 
cumulation until  a  period  of  distribution  shall  have  been 
reached. 

N.  B. — For  conciseness,  the  accumulation  period  is 
often  spoken  of  as  the  "  PERIOD  "  of  the  policy. 

PAID-UP  OPTION LIFE  POLICIES. 

Under  Ordinary  Life  and  Limited  Payment  Life  Pol- 
icies, when  the  paid-up  option  is  selected  at  the  end  of 
the  Accumulation  Period  and  the  paid-up  assurance  ex- 
ceeds the  amount  of  the  original  policy,  the  policy-hold- 
er may  take  a  paid-up  policy  for  the  whole  amount  of  the 
original  policy  and  draw  the  cash  value  of  the  excess; 
or,  the  paid-up  policy  may  be  issued  to  include  this  ex- 
cess, subject  to  a  satisfactory  medical  examination  and 
the  Society's  approval  of  the  risk. 


74  HOW  TO   SELL  ASSURANCE. 

MATURED  ENDOWMENTS. 

All  Endowment  Policies  mature  at  the  end  of  the  En- 
dowment Period,  and  the  amount  due  is  payable  to  the 
assured  in  cash,  but  if  he  desires  to  convert  the  money 
into  paid-up  life  assurance  for  a  larger  amount  he  has 
the  option  of  so  doing,  subject  to  a  satisfactory  medical 
examination  and  the  Society's  approval  of  the  risk. 

AUTOMATIC  PAID-UP  ASSURANCE. 

Surrender  Values  in  Paid-up  Assurance,  when  grant- 
ed, are  (except  under  Double  Endowment  and  Joint  Life 
policies)  automatic,  and  if  no  action  is  taken  by  the  as- 
sured the  Paid-up  Assurance  will  immediately  go  into 
effect.  But: 

If  the  policy  becomes  automatically  paid-up  the  as- 
sured can  at  any  time  secure  the  Cash  Value  instead. 

GRACE  IN  PAYMENT  OF  PREMIUMS. 

A  grace  of  thirty  days  is  provided  for  in  the  payment 
of  all  premiums  after  the  policy  has  actually  gone  into 
force. 

EXTENDED  TERM   ASSURANCE. 

Policies  granting  Extended  Term  Assurance  do  so  on 
the  condition  that  Extended  Assurance  is  applied  for 
within  thirty  days  after  the  date  on  which  a  premium 
is  due  and  unpaid.  Or,  it  will  be  granted  if  applied  for 
within  a  year,  if  the  assured  can  furnish  a  satisfactory 
certificate  of  continued  good  health. 

EXTENDED  ASSURANCE  ON  THE  ENDOWMENT  FORM. 

If  an  Endowment,  after  being  in  force  for  a  number 
of  years,  is  surrendered  for  Extended  Assurance,  the 
policy  will  be  extended  for  a  period  indicated  in  the 


HOW  TO   SELL  ASSURANCE.  75 

tables  of  Surrender  Values.  If  this  period  extends 
to  the  end  of  the  Endowment  period,  the  assurance 
will  cease  at  the  end  of  the  period,  and  the  assured,  if 
living,  can  draw  in  cash  the  amount  stipulated  in  the 
last  column  of  the  tables.  If  the  Extended  Period 
ends  before  the  termination  of  the  Endowment  Period, 
the  assurance  ceases,  and  no  cash  will  be  paid. 

ENDOWMENTS  SURRENDERED  FOR  PAID-UP  ASSURANCE. 

When  an  Endowment  Policy  is  surrendered  before 
maturity  for  Paid-up  Assurance  the  Paid-up  Policy  will 
be  an  Endowment  also,  maturing  at  the  date  the  original 
policy  would  have  matured ; 

— but:— 

if  desired  the  policy-holder  may,  in  lieu  of  a  paid-up  En- 
dowment, select  a  paid-up  Life  policy  for  an  increased 
amount,  subject  to  a  satisfactory  medical  examination 
and  the  Society's  approval  of  the  risk. 

ANNUAL  DIVIDEND  POLICIES. 

Annual  Dividend  policies  are  issued  at  the  same  pre- 
mium rate  as  the  Guaranteed  Cash- Value  policies,  and 
grant  the  same  privileges,  including  loans  and  surrender 
values. 

RESERVE. 

It  seems  paradoxical  to  those  who  are  not  familiar 
with  assurance  parlance  that  a  3  per  cent,  reserve  is 
higher  than  a  4  per  cent,  reserve.  As  a  matter  of  fact, 
the  highest  standard  upon  which  life  assurance  policies 
are  valued  in  the  United  States  is  a  3  per  cent,  standard. 
The  3^2  per  cent,  is  an  intermediate  standard,  and  of  the 
three  the  4  per  cent,  is  the  lowest.  When  the  Actuary 
of  a  company  proceeds  to  calculate  the  amount  of  re- 
serve which  it  is  necessary  for  the  company  to  hold  to 


76  HOW  TO   SELL  ASSURANCE. 

protect  a  certain  group  of  policies,  he  assumes  that  the 
money  held  by  the  company  to  meet  its  obligations  un- 
der these  policies  will  be  invested  and  will  be  increased 
by  interest.  If  he  assumes  that  the  interest  earned  on  the 
average  will  be  3  per  cent.,  it  will  be  necessary  for  the 
company  to  have  a  larger  sum  to  invest  in  order  to  se- 
cure the  same  ultimate  result  than  if  he  assumed  that  3^ 
per  cent,  or  4  per  cent,  would  be  earned.  Thus  it  is  that 
a  3  per  cent,  reserve  must  be  larger  than  a  3^2  per  cent., 
and  that  a  3^2  per  cent,  reserve  must  be  larger  than  a 
4  per  cent,  reserve.  Other  things  being  equal,  there- 
fore, a  group  of  policies  based  on  a  3  per  cent,  reserve 
are  safer,  and  are  protected  by  a  larger  volume  of  assets, 
than  if  they  were  based  on  a  3^2  per  cent,  or  4  per  cent, 
reserve. 

TOTAL  ABSTINENCE  CLASS. 

In  response  to  a  request  contained  in  a  petition  signed 
by  a  number  of  representative  policy-holders,  the  Equi- 
table established  a  separate  class  at  the  beginning  of  the 
year  1900,  into  which  total  abstainers  from  alcoholic 
beverages,  who  desire  new  assurance  on  the  Deferred 
Dividend  plan,  can  enter,  if  they  see  fit,  and  are  accepted 
by  the  Society.  If  the  losses  by  death  in  this  class  show 
a  smaller  percentage  than  in  our  general  class,  the  sur- 
plus at  the  end  of  the  period  will  be  correspondingly 
larger.  The  Society,  however,  makes  no  predictions  as 
to  the  relative  mortality  or  surplus  in  the  two  classes. 

REINSTATEMENT  IN  CASE  OF  LAPSE. 

In  case  of  lapse  by  reason  of  the  non-payment  of  pre- 
miums, the  policy  may  be  reinstated  at  any  time  upon 
the  assured  furnishing  satisfactory  evidence  of  good 
health,  and  the  payment  of  all  arrears,  with  interest  at 
five  per  cent,  per  annum. 


HOW  TO   SELL  ASSURANCE.  77 

CHAPTER  XVIII. 
HOW    TO    CHOOSE    A    POLICY. 

We  should  think  very  poorly  of  a  carpenter  who  did 
not  know  how  to  use  all  his  tools,  or  who  did  not  know 
what  tools  he  had  in  his  chest ;  and  we  all  know  that  a 
handy  man  can  do  more  with  a  jack-knife  than  an  un- 
skillful man  can  do  with  a  full  kit  of  the  very  best  tools. 

Every  agent  should  thoroughly  understand  the  uses 
of  all  his  tools,  and  to  that  end  he  should  make  for  him- 
self a  list  of  his  tools,  and  keep  it  revised  from  month  to 
month. 

Such  a  list  may  consist  of  a  list  of  policies  (arranged 
alphabetically)  with  the  uses  of  each  policy  added;  or 
it  may  be  arranged  in  accordance  with  the  following 
plan,  under  which  a  list  is  given  of  the  different  classes 
who  assure  with  the  appropriate  policies  appended. 

The  following  is  a  mere  skeleton.  If  filled  out  more 
completely  it  may  be  very  useful  to  refer  to. 

I.  Poor  man  with  family  to  protect. 

Ordinary  Life,  G.  C.  V.  Policy,  (20  Year  Period  unless  very 
old). 

Ultimate  cost  of  assurance  reduced  to  a  minimum  at  end  of 
period  by  surplus  then  distributed. 

Guarantee  of  loan  in  case  assured  is  "  hard  up  "  during  period. 

Right  to  continue  assurance  at  end  of  period. 


78  HOW  TO   SELL  ASSURANCE. 

2.  Man  who  wants  protection  while  developing  his  business,  but 

who  wishes  at  the  same  time  to  make  a  good  investment. 
G.  C.  V.  Endowment  Policy. 
Endowment  5  per  cent.  Gold  Bond. 
Endowment  Bond. 
All  these  forms  give  protection,  and  also  a  good  investment. 

3.  Man  wanting  permanent  assurance,  but  wishing  relief  from 

burden  of  premiums  in  old  age. 
Limited  Payment  Life  Policy  of  any  form. 

4.  Young  man  uninterested  in  assurance,  wishing  to  save  money. 
Endowment  better  than  life ; 

Deferred  Dividend  better  than  Annual  Dividend ; 

Double  Endowment  best  of  all,  because  vigorous  young  man 
expects  to  live.  To  his  interest  therefore  to  assure  in  class 
where  he  will  receive  large  reward  for  longevity  and  persistence. 

5.  Man  desiring  full  share  of  profits  at  end  of  period, but  afraid  of 

loss  of  profits  in  case  of  death  between,  say  i$th  and  20th 
years. 

Indemnity  Policy,  because  besides  granting  25  per  cent,  divi- 
dend in  case  of  death  during  period,  it  is  a  G.  C.  V.  Contract, 
with  all  the  guaranteed  surrender  values,  loans,  etc.,  of  the 
G.  C.  V.  form. 

Return  Premium  G.  C.  V.  Policy. 

Endowment  Bond,  which,  in  case  of  death,  guarantees  that 
the  return  shall  be  at  least  all  that  has  been  paid  with  4  per  cent, 
compound  interest  added. 

6.  Man  whose  wife  or  daughter  is  without  business  experience 

and  might  lose  or  waste  the  assurance  if  paid  in  one  lump 

sum. 

G.  C.  V.  Instalment  Policy  (with  stipulation  that  beneficiary 
is  limited  to  instalment  settlement),  or,  better  still,  if  only  one 
beneficiary  to  be  provided  for,  Continuous  Instalment  Policy. 

7.  For  servant  or  other  dependent  whom  Assured,  during  his 

own  lifetime  can  support,  but  who  would  be  destitute  there- 
after. 
Continuous  Instalment  Policy,  or  Survivorship  Annuity. 


HOW  TO   SELL  ASSURANCE.  79 

8.  Man  who  believes  in  assurance,  but  is  unwilling  to  pay  regu- 
lar rates  for  it. 

Yearly  Renewable  Term  Policy. 

After  inserting  this  entering  wedge  the  agent  should  follow 
up  the  case  closely  and  show  the  assured  the  advantage  of 
changing  to  a  more  profitable  form. 

p.  Man  who  hesitates  to  assure  until  he  can  afford  larger  policy. 
Yearly  Renewable  Term  Policy,  to  protect  him  during  interval. 

10.  Man  who  refuses  to  assure  until  he  has  decided  what  kind 
of  contract  suits  him  best. 

Yearly  Renewable  Term  Policy,  while  he  is  deciding. 

11.  Man  attracted  by  cheapness  of  Assessment  insurance. 
Yearly  Renewable  Term  Policy. 
Non-Participating  Policy. 

12.  Man  who  insists  upon  knowing  definitely  the  exact  amount 
to  be  paid  every  year,  and  indifferent  about  dividends. 

Non- Participating  Policy. 

13.  Man  zvith  money  to  invest  indifferent  to  assurance. 
Five  per  cent.  Gold  Bond. 

Endowment  Bond. 

Double  Endowment,  if  in  vigorous  health  and  expects  to  out- 
live his  expectation. 

14.  Man  willing  to  pay  for  biggest  and  greatest  number  of  guar- 
antees. 

Endowment  Bond. 

15.  Man  who  cannot  see  superiority  of  Deferred  Dividend  plan 
and  will  not  listen  to  argument,  but  insists  on  annual  divi- 
dends. 

Annual  Dividend  Policy. 

1(5.  Man  wishing  to  provide  marriage  portion  for  daughter,  or  to 

set  son  up  in  business  after  reaching  certain  age. 
Child's  Endowment.     (See  table  in  Blue  Book.) 

17.  Man  having  a  large  amount  of  cash  which  he  wishes  to  salt 
down,  and  who  doesn't  want  to  be  bothered  with  annual 
premiums. 
Single  Payment  Policy. 


8o  HOW  TO   SELL  ASSURANCE. 

18.  Partners  in  business. 

Joint  Life  Policy,  or,  better  still,  a  separate  policy  of  any  form, 
on  the  life  of  each  partner. 

ig.  Man  wishing  to  provide  annuity  for  wife,  son,  or  daughter, 

without  sinking  large  capital  in  advance. 

Compound  Annuity,  which  increases  annually  as  annual  de- 
posits are  made. 

20.  Man  having  capital  to  invest  and  an  abundant  income,  but 
who  wishes  to  retire  from  business  after  reaching  a  certain 
age. 

Deferred  Annuity,  which  guarantees  very  large  life  income 
after  a  term  of  years. 

Endowment,  payable  to  himself  in  instalments. 

21.  Old  man  or  woman  not  in  business,  without  dependents,  the 
income  on  whose  invested  capital  is  inadequate  for  com- 
fortable support. 

Life  Annuity. 

22.  Man  wishing  to  provide  support  for  wife,  daughter,  mother, 

or  other  dependent,  to  begin  at  his  death  whenever  that  may 
occur. 
Survivorship  Annuity,  or  Continuous  Instalment  Policy. 

23.  Man    wishing    discount    from    bank,    whose    credit    needs 
strengthening. 

Any  desired  form  of  policy,  but  preferably  an  Endowment,  as 
the  guarantees  on  an  endowment  are  larger  than  on  other  forms. 

24.  Man  with  mortgaged  home  which  would  create  burden  for 
family  if  he  should  die. 

Any  form  of  life  policy  will  do.  An  Endowment  Policy  would 
enable  him  to  pay  the  mortgage  during  his  own  lifetime  if  he 
survive  the  endowment  period. 

25.  Man  embarking  in  new  business  ventures  which  would  col- 
lapse in  case  of  premature  death. 

Any  desired  form  of  policy. 

26.  Man  who  has  borrowed  money  to  use  in  his  business  which 

his  executors  or  family  could  not  pay  if  he  died. 
Any  desired  form  of  policy. 


HOW  TO   SELL  ASSURANCE.  8 1 

27.  Man  who  has  borrowed  on  collateral  which  in  case  of  his 
death  would  be  sold  to  pay  off  his  loan. 

Any  form  of  Life  policy,  of  sufficient  amount  to  pay  off  loan, 
leaving  the  collateral  intact. 

28.  Man  who  has  tried  to  lay  up  capital  for  a  rainy  day,  but  has 
failed. 

Any  Endowment  or  Deferred  Dividend  form  of  policy. 

29.  Man  wishing  to  provide  ready  money  to  protect  his  estate 

in  case  of  his  premature  death,  but  whose  chief  aim  is  to 
lay  up  money  for  his  own  support  in  after  life. 
Any  form  of  Endowment  Policy  or  Bond. 

30.  Rich  man  who  knows  the  wisdom  of  not  having  all  his  eggs 
in  one  basket,  but  who  -finds  it  hard  to  get  absolutely  secure 
and  profitable^  investments  for  surplus  funds. 

Any  form  of  Life  or  Endowment  Policy  or  Bond. 


PART  II. 


GENERAL  HINTS. 


HOW  TO   SELL  ASSURANCE.  85 


CHAPTER  I. 

DON'T. 

Don't  talk  too  much.  Find  out  in  advance  all  that 
can  be  known  about  the  man  you  wish  to  assure — his 
age,  family,  business,  surroundings,  habits,  idiosyn- 
crasies. It  saves  talk  later  on.  Some  agents  assassinate 
success  with  their  tongues. 

Don't  be  a  bore.  The  agent  who  is  a  bore  is  a  "  back 
number." 

Don't  waste  powder  and  shot.  If  you  have  a  hundred 
good  arguments  and  capture  your  man  with  one  of  them, 
save  the  other  ninety-nine  for  the  next  man.  It  saves 
time  as  well  as  ammunition. 

Don't  offer  the  same  man  all  the  policies  on  the  list. 
Find  out  which  form  will  suit  him  best.  Offer  that,  and 
don't  change  to  another  unless  you  discover  that  some 
other  form  will  suit  his  requirements  more  exactly. 

Don't  stray  from  the  path.  Remember  that  your  work 
is  to  make  policy-holders,  not  actuaries.  Some  agents 
think  that  the  way  to  assure  a  man  is  to  give  him  full 
instruction  regarding  the  mathematics  and  science  of  life 
assurance.  But  such  agents  write  mighty  little  business. 

Don't  let  the  applicant  get  beyond  his  depth.  It  is  not 
true  hospitality  to  feed  your  guest  so  full  that  he  cannot 


86  HOW  TO  SELL  ASSURANCE. 

digest  his  food.  Keep  your  eye  on  the  applicant.  See 
to  it  that  he  understands  every  proposition  you  advance. 
Don't  expect  to  convince  him  by  statements  he  can't  com- 
prehend. And  when  you  have  convinced  him,  give  him 
a  rest. 

Don't  think  you  know  it  all.  The  only  way  to  make 
what  you  have  to  say  clear  is  to  understand  it  thoroughly 
yourself.  The  best  agents  are  those  who  learn  some- 
thing new,  and  apply  it  to  their  work,  every  day  of  their 
lives. 

Don't  get  into  a  rut.  The  Equitable  issues  a  great 
variety  of  policies.  Why?  Because  there  are  a  great 
variety  of  men.  The  agent  may  make  a  specialty  of  one 
form  of  policy,  but  he  should  be  thoroughly  familiar 
with  every  form;  for  now  and  then  he  will  run  across 
a  man  to  whom  his  specialty  will  not  apply. 

Don't  stop  half  way.  Finish  your  work.  It  is  good 
to  secure  an  application ;  it  is  better  to  deliver  the  policy ; 
it  is  best  to  influence  the  assured  to  keep  his  policy  in 
force  until  its  maturity.  Why?  Because  not  only  will 
you  increase  your  income,  but  instead  of  having  the 
country  full  of  deserters  from  your  ranks,  you  will  have 
around  you  a  strong  army  of  allies  who  will  help  you 
to  fight  future  battles. 

Don't  get  discouraged  by  failure.  Every  failure  gives 
experience,  and  every  thoughtful  agent  can  manufacture 
gold  out  of  experience.  Such  a  man  will  find  that  he  has 
discovered  the  philosopher's  stone. 


HOW  TO  SELL  ASSURANCE.  87 

Don't  overdo  it.  There  are  forty  or  fifty  bushels  of 
dont's  that  might  be  added  to  those  I  have  given  here, 
but  I  must  take  my  own  medicine,  and  leave  the  rest  to 
your  own  common  sense. 


88  HOW  TO   SELL  ASSURANCE. 


CHAPTER   II. 

CONFIDENCE. 

When  a  good  thing  is  put  to  a  bad  use  it  becomes  a 
dangerous  evil.  The  green-goods  man  and  the  gold- 
brick  swindler  who  sell  worthless  rubbish  for  good 
money  are  called  confidence  men,  because  they  first  gain 
the  confidence  of  their  victims  and  then  proceed  to  fleece 
them. 

If  what  is  worthless  can  thus  be  sold  through  confi- 
dence, what  an  enormous  advantage  It  is  to  the  life  agent 
(who  has  the  best  wares  in  the  market  for  sale)  to  secure 
the  confidence  of  his  customers !  And  if  the  agent  suc- 
ceeds in  securing  the  confidence  of  a  number  of  indi- 
viduals, his  entire  community  will  soon  have  implicit 
faith  in  him  and  in  his  company.  Then  he  will  occupy 
an  impregnable  position.  He  will  get  the  cream  of  the 
business  within  his  territory,  and  as  those  who  are  young 
reach  mature  years  and  marry  and  raise  families  he  will 
be  able  to  assure  their  lives  also.  And  the  residenfrand 
visiting  agents  of  other  companies  will  never  be  able 
to  dislodge  him  from  his  intrenchments. 

Every  successful  business  enterprise  is  based  on  con- 
fidence. Without  it  no  enterprise  can  succeed. 

Make  it  your  first  object,  therefore,  to  secure  the  con- 
fidence of  your  customer.  Do  not  leave  this  point  in 


HOW  TO  SELL  ASSURANCE.  89 

doubt.  Even  if  a  man  has  confidence  in  your  company, 
it  will  not  suffice  if  he  has  not  confidence  in  you.  Many 
an  agent  never  knows  whether  he  has  a  man's  confidence 
or  not.  And  yet  in  most  cases  where  the  agent  has  failed 
to  write  an  application,  the  reason  has  been  that  he  has 
failed  to  secure  the  confidence  of  the  man  he  has  been 
soliciting. 

Be  moderate,  therefore,  in  your  statements.  Avoid 
exaggeration.  Draw  a  short  bow.  Never  promise  what 
an  intelligent  man  knows  you  have  no  ability  to  guar- 
antee. 

It  is  not  always  easy  to  discover  whether  you  have 
won  a  man's  confidence  or  not,  and  that  for  a  very  sim- 
ple reason,  namely,  because  most  men  have  courteous 
instincts,  and  may  hesitate  to  admit  that  they  lack  con- 
fidence in  you.  Many  an  agent  goes  to  a  man  ahd  ad- 
vises him  to  take  a  policy ;  he  advances  all  his  best  argu- 
ments ;  he  is  eloquently  persuasive ;  but  he  fails  to  write 
the  application.  Why?  The  customer  says,  truthfully 
enough  perhaps,  that  he  has  not  'made  up  his  mind,  or 
that  it  is  inconvenient  for  him  to  pay  the  premium,  etc., 
etc.  But 'out  of  courtesy,  and  because  he  does  not  wish 
to  wound  the  feelings  of  the  agent,  he  withholds  the  real 
difficulty,  which,  if  removed,  would  sweep  away  every 
other  obstacle ;  and  that  is,  that  he  has  not  confidence  in 
what  the  agent  tells  him.  He  says  to  himself :  "  This 
agent  is  enthusiastic  and  over-sanguine,  hence  I  shall 
not  take  his  advice."  Or,  "  This  young  man  may  not 
intend  to  exaggerate,  but  it  is  obvious  to  me  that  he 


90  HOW  TO   SELL  ASSURANCE. 

does,  and  I  shall  get  rid  of  him  as  politely  and  as  quickly 
as  I  can."  Or,  "  This  agent  may  be  honest,  but  I  ques- 
tion whether  he  is  well  informed ;  what  he  believes  may 
not  be  quite  accurate,  and  so  I  shall  transact  my  busi- 
ness with  somebody  else."  Or,  "  This  illustration  of 
dividends  is  too  good  to  be  true.  I  shall  not  be  so  rude 
as  to  express  any  doubt  regarding  the  figures,  but  I  shall 
get  rid  of  this  agent  as  soon  as  I  can,  and  if  I  ever  de- 
cide to  assure  my  life  I  shall  try  to  find  an  agent  and  a 
company  that  I  can  certainly  place  absolute  confidence 
in." 

Let  the  chief  aim,  then,  of  the  Equitable  agent  be,  first, 
so  to  live  and  speak  that  he  shall  command  confidence 
and  respect;  and  second,  let  him  lay  before  the  public 
the  facts  regarding  his  company  in  so  forcible  and  at  the 
same  time  in  so  reasonable  a  way  that  its  strength  and 
the  character  of  its  management  cannot  fail  to  be  recog- 
nized. Then,  in  each  individual  case,  let  him  find  out 
surely  whether  he  has  gained  the  confidence  of  his  cus- 
tomer ;  and  if  not,  let  his  first  work  be  to  secure  it. 

Remember  also,  that  the  agent  must  have  confidence 
in  his  company  or  he  cannot  transmit  that  confidence 
to  his  customer.  Equitable  agents  who  represent  a  com- 
pany that  richly  deserves  their  fullest  confidence  have  a 
great  advantage  over  men  who  have  doubts  about  the 
companies  they  represent,  and  who,  consequently,  have 
to  do  a  great  deal  of  pretending  in  order  to  sell  their 
wares. 

Finally,  the  agent  must  have  confidence  in  himself. 


HOW  TO   SELL  ASSURANCE.  91 

Some  agents  lack  that  confidence  (notwithstanding  the 
gibes  of  scoffers  about  the  "  brazen  cheek  "  of  the  life 
assurance  solicitor).  But  no  Equitable  agent,  who  is 
industrious  and  intelligent,  who  adheres  to  sound  busi- 
ness methods  and  sticks  to  the  truth,  need  have  any  fears 
or  misgivings,  seeing  that  he  has  the  Equitable — the 
strongest  in  the  world — at  his  back. 


92  HOW  TO   SELL  ASSURANCE. 

CHAPTER  III. 

DON'T  GO  TOO  FAST! 

The  most  important  warning  to  give  to  the  young  so- 
licitor is :  "  Don't  expect  to  be  a  f nil-Hedged  agent  all 
at  once." 

It  is  as  necessary  for  the  life  assurance  solicitor  to 
have  training  and  experience  as  it  is  for  the  physician, 
the  lawyer,  or  the  engineer.  It  is  true  that  the  solicitor 
enjoys  a  great  advantage;  he  can  learn  his  trade  as  he 
goes  along;  he  can  earn  a  living,  if  he  is  diligent  and  in- 
telligent, while  he  is  learning.  It  is  not  necessary  for  him 
to  have  capital,  or  to  spend  several  years  in  preliminary 
study,  paying  expenses  meanwhile  out  of  his  own  pocket ; 
but  he  must  learn  his  business  all  the  same. 

Many  a  youth  just  out  of  school  or  college,  absolutely 
without  business  experience,  has  gone  into  life  assur- 
ance and  prospered  from  the  very  beginning.  Others 
have  made  the  attempt  and  failed.  Why?  Not  because 
they  have  lacked  energy  or  brains,  but  because  they  have 
allowed  their  greed  to  get  the  better  of  their  discretion. 
I  could  cite  many  instances.  Let  me  mention  two  by 
way  of  illustration : 

A  young  friend  appealed  to  me  some  years  ago  for 
an  agency  position.  He  had  all  the  qualities  to  fit  him 
for  making  a  successful  solicitor.  I  explained  to  him, 


HOW  TO   SELL  ASSURANCE.  93 

in  the  first  place,  that  there  was  no  greater  folly  for  a 
young  man  than  to  attempt  to  be  a  general  agent  all 
at  once.  It  is  true  that  there  is  always  room  at  the  top, 
and  it  should  be  the  ambition  of  every  solicitor  to  ad- 
vance as  rapidly  as  his  abilities  and  his  experience  will 
justify;  but  he  must  not  overrun  the  mark.  It  is  folly 
for  the  farmer  to  develop  more  land  than  he  can  culti- 
vate; there  is  no  use  of  breaking  ground  and  sowing 
seed  unless  you  can  follow  the  work  up  and  secure  a 
crop,  and  harvest  it.  I  explained  to  this  young  man 
that  the  shrewdest  thing  for  him  to  do  would  be  to  make 
a  contract  with  a  competent  general  agent  of  the  Society, 
and  I  explained  that  the  larger  the  interest  in  the  busi* 
ness  retained  by  the  general  agent,  the  more  rarpid  the 
young  man's  progress  zvould  be;  because,  the  greater 
the  interest  of  the  general  agent  in  his  success,  the  more 
rapidly  would  he  learn  the  business,  and  the  more  cer- 
tainly would  the  early  applications  written  by  him  be 
closed. 

It  is  not  the  smartest  thing  in  the  world  for  the  in- 
experienced solicitor  to  strike  a  sharp  bargain  with  the 
general  agent ;  for  if  such  a  young  man  is  left  to  his  own 
devices,  if  the  general  agent  has  no  pecuniary  interest 
in  his  work,  he  is  in  great  danger  of  being  swamped  by 
difficulties  which  have  ceased  to  be  difficulties  to  the 
agent  of  experience. 

In  the  case  referred  to,  the  general  agent  wished  to 
give  this  young  man  a  "  taste  of  blood,"  hoping  to  en- 
courage him  by  a  little  success.  So  he  arranged  it  that 


94  HOW  TO   SELL  ASSURANCE. 

in  the  very  beginning  he  should  succeed  in  writing,  with 
no  serious  difficulty,  a  large  application.  But  this  turned 
the  young  man's  head.  Why  should  he  share  his  com- 
mission with  the  general  agent  on  business  so  easily  ob- 
tained ?  Why  should  he  not  paddle  his  own  canoe  ?  He 
tried,  therefore,  to  go  it  alone,  failed  ignominiously,  and 
went  away  discouraged. 

Some  years  ago  I  knew  a  school  teacher  who  had  been 
successful,  and  had  made  a  large  circle  of  influential 
acquaintances,  but  he  was  driven  out  of  business  by  the 
establishment  of  certain  large  schools,  backed  by  heavy 
capital.  He  was  a  man  of  intellectual  force,  highly  cul- 
tivated, magnetic,  attractive.  He  made  acquaintances 
readily,  and  was  popular  with  all  who  knew  him.  He 
agreed  to  solicit  life  assurance.  My  advice  to  him  was 
that  he  should  in  the  beginning  be  content  with  very 
moderate  remuneration;  that  he  should  not  attempt  in 
the  first  instance  to  canvass  at  all,  but  should  confine 
himself  simply  to  bringing  people  in  contact  with  the 
experienced  general  agent  with  whom  he  made  his  con- 
tract. I  said  to  him,  "  Let  the  general  agent  do  all  the 
work  at  first.  Let  the  general  agent  realize  most  of  the 
profit.  Listen  to  him ;  watch  him,  and  gradually  you  will 
find  yourself  competent  to  do  the  work  yourself,  relying 
upon  the  general  agent  to  help  you  only  over  such  ob- 
stacles as  prove  to  be  especially  difficult.  After  that,  if 
you  are  successful,  you  will  find  no  difficulty  in  demand- 
ing and  securing  adequate  pay  for  your  services."  What 
was  the  result?  This  man  of  talent  saw  that  the  general 


HOW  TO   SELL  ASSURANCE.  95 

agent's  work  was  done  with  such  ease  that  he  jumped 
in  prematurely  on  his  own  account,  failed,  became  ut- 
terly discouraged,  and  threw  up  the  sponge.  Instead 
of  a  successful  and  remunerative  career,  he  made  a  dis- 
mal failure. 

Men  of  a  certain  stamp  who  refuse  ever  to  be  disheart- 
ened by  discouraging  experiences,  who  hang  on  through 
thick  and  thin,  can,  without  doubt,  start  in  without  guid- 
ance or  backing,  and  carve  out  success  for  themselves. 
But  it  is  a  question,  even  in  the  case  of  such  a  man, 
whether  remunerative  success  does  not  come  more  slowly 
than  if  he  had  been  less  greedy  for  large  gains  in  the 
beginning,  and  had  relinquished  a  considerable  portion 
of  his  profit  in  serving  a  sort  of  apprenticeship. 

The  best  advice,  then,  to  the  young  agent  is :  "  Push 
forward  with  all  the  energy  you  possess.  Take  advan- 
tage of  every  opportunity  that  presents  itself.  But  be 
moderate  and  patient.  In  certain  respects  go  slowly. 
Get  the  most  expert  training  you  can  secure;  and  re- 
member that  if  that  training  is  to  be  valuable,  you  can- 
not expect  to  get  it  quickly  without  paying  for  it  in  some 
way.  Remember  that  you  are  lucky  in  not  being  called 
upon  to  pay  for  it  in  cash  out  of  your  slender  means, 
but  that  you  can  obtain  it  through  the  general  agent  by 
giving  him  a  liberal  interest  in  the  applications  you  write. 
In  going  into  the  life  assurance  business,  while  you  can 
start  without  money,  you  must,  nevertheless,  accumulate 
capital — a  capital  consisting  of  knowledge,  experience, 
aptitude  and  skill.  Don't  get  the  cart  before  the  horse. 


96  HOW  TO   SELL  ASSURANCE. 

Lay  in  that  capital  first,  and  you  will  make  money  speed- 
ily. Try  to  make  your  fortune  all  at  once,  trusting  to 
luck  or  to  the  future  for  knowledge  and  skill,  and  you 
will  make  no  money,  and  will  fail  ignominiously. 


HOW  TO  SELL  ASSURANCE.  97 


CHAPTER   IV. 

WILL— CONCENTRATION— MOMENTUM. 

If  you  intend  to  go  to  work,  there  is  no  place  better  than 
where  you  are.  If  you  do  not  intend  to  go  to  work,  you  cannot 
get  along  anywhere. — Abraham  Lincoln. 

If  you  zvill  to  assure  a  man's  life,  your  success  is  sure, 
unless  the  other  man's  will  is  stronger  than  yours,  and 
you  will  triumph  even  then  if  he  does  not  oppose  his  will 
to  yours. 

A  youth  once  sang — 

I  want  to  be  an  agent, 
And  with  the  agents  stand; 
A  rate-book  in  my  pocket, 
A  leaflet  in  my  hand. 

But  the  old  agent  said :  "  Hold  on,  young  man !  What 
you  want  in  your  hand  is  an  application;  and  you  don't 
want  to  stand,  either ;  you  want  to  get  a  move  on  you ; 
you  want  to  hustle." 

The  way  to  be  an  agent  is  to  be  one.  Wishing  will  not 
do  it ;  willing  will. 

If  you've  any  task  to  do,  let  me  whisper,  friend,  to  you, 

Do  it. 
If  you've  anything  to  say,  true  and  needed,  yea  or  nay, 

Say  it. 
If  you've  anything  to  give,  that  another's  joy  may  live, 

Give  it. 

If  you  know  what  torch  to  light,  guiding  others  through  the 
night, 

Light  it.  —London  Endeavor. 


98  HOW  TO  SELL  ASSURANCE. 

Do  you  fully  recognize  the  value  of  concentration? 

"  Concentration  begets  success."  Any  boy,  with  a 
"  burning  glass,"  can  light  a  fire  by  concentrating  upon 
one  point  the  feeble  rays  of  sunlight,  which,  diffused 
about  his  face,  scarcely  warm  his  cheek.  Concentrate 
your  energies  on  the  object  to  be  attained  and  you  must 
succeed. 

Do  you  fully  recognize  the  importance  of  momentum? 
The  momentum  of  a  projectile  is  not  measured  by  its 
speed  alone,  nor  by  its  weight  alone,  but  by  both,  taken 
together. 

You  can  drive  a  tallow  candle  through  a  board  by 
firing  it  out  of  a  gun — that  illustrates  the  momentum  re- 
sulting from  velocity.  I  once  saw  a  strong  metal  roof, 
which  covered  a  great  dock  in  this  harbor,  swept  away 
as  if  it  had  been  made  of  brown  paper,  by  the  bowsprit 
of  a  Cunard  steamer,  although  the  ship  was  scarcely 
moving.  That  illustrates  the  momentum  resulting  from 
weight.  Combine  the  utmost  velocity  with  the  greatest 
weight,  and  you  have  a  momentum  that  cannot  be  re- 
sisted. Now,  an  Equitable  agent  can  put  as  much  en- 
ergy (velocity)  into  his  work  as  can  the  agent  of  any 
other  company,  so  he  is  at  no  disadvantage  when  it 
comes  to  a  question  of  speed.  And  when  he  puts  back 
of  that  energy  the  whole  weight  of  the  Equitable — "  the 
strongest  in  the  world  " — with  its  surplus  of  seventy-one 
millions,  he  will  attain  the  maximum  momentum,  and 
his  progress  will  be  IRRESISTIBLE. 


HOW  TO   SELL  ASSURANCE.  99 


CHAPTER  V. 

THE  ADVANTAGES  OF  HAVING  THE 
EQUITABLE  BACK  OF  YOU. 

Sometimes  in  competition  an  Equitable  agent,  who  is 
distant  from  headquarters,  is  hard  pressed  by  the  agent 
of  some  other  company,  who  springs  on  the  applicant 
a  big  dividend,  or  a  low  premium,  or  a  novel  privilege, 
or  an  excessive  guarantee. 

What  is  the  Equitable  agent  to  do  in  such  a  case? 
There  are  four  methods  of  procedure: 

1.  He  can  lie  down  and  let  the  enemy  walk  over  him; 
or, 

2.  He  can  telegraph  to  headquarters  petulantly  as- 
serting that  he  will  throw  up  his  contract  unless  the 
Society  will  instantly  do  what  the  competing  agent  says 
the  company  he  represents  is  prepared  to  do ;  or, 

3.  He  can  "  spar  for  wind  "  until  he  can  obtain  advices 
from  the  Society;  or, 

4.  He  can  meet  the  issue  squarely  by  throwing  his 
company,  "  the  strongest  in  the  world,"  bodily  at  the 
head  of  the  enemy.    He  can,  in  this  way,  show  that  the 
whole  is  more  important  than  its  parts.     He  can  weigh 
one  company  against  the  other,  and  then  minor  questions 
about  the  contract,  the  premium,  the  dividend,  etc.,  will 
not  assume  undue  proportions. 


100  HOW  TO  SELL  ASSURANCE. 

An  agent  who  has  the  Equitable  behind  him  has  a 
right  to  exhibit  pluck  and  dash;  and  if  he  is  wise  he 
will  follow  the  fourth  of  the  foregoing  methods  in  com- 
peting with  the  agents  of  companies  whose  financial 
strength  is  less  than  that  of  the  Equitable,  and  whose 
record  is  inferior  to  our  record ;  that  is  to  say,  with  the 
agents  of  all  other  companies. 

When,  therefore,  a  big  dividend,  or  a  new  option,  or 
a  small  premium  is  fired  at  you,  do  not  be  afraid  to  meet 
the  attack.  If  in  no  other  way,  you  can  silence  the  rifle 
fire  of  the  enemy  by  bringing  your  heavy  artillery  into 
action.  "  Not  for  a  day,  but  for  all  time  " — "  Protection 
that  protects  " — "  Strongest  in  the  world." 

Often  when  a  large  dividend  paid  by  some  other  com- 
pany is  quoted  against  you,  you  would  be  able  to  re- 
taliate in  kind  if  you  had  a  corresponding  Equitable  ex- 
ample at  hand,  but  in  the  beginning  it  may  be  necessary 
for  the  Equitable  agent  to  act  before  he  can  get  details 
from  headquarters ;  therefore,  he  may  be  forced  to  pass 
from  small  details  to  comprehensive  arguments,  and 
show  that  a  company  may  pay  a  big  dividend  here  and 
there  and  yet  not  be  the  best  company  to  patronize.  How 
many  capitalists  would  there  be  left  if  every  millionaire 
should  reinvest  all  his  money  in  securities  whose  only 
merit  is  that  they  have  paid  big  dividends  ? 

In  the  same  way  when  the  competition  is  based  on  the 
lowness  of  a  premium,  a  practical  business  man  can  be 
shown  that  the  same  rules  apply  to  an  investment  in  life 
assurance  as  to  one  in  railroad  securities.  Why  does  a 


HOW  TO   SELL  ASSURANCE.  IOI 

man  pay  no  for  one  bond  when  another  promising  the 
same  rate  of  interest  can  be  bought  at  a  price  30  per 
cent,  below  par? 

Is  it  not  often  the  case  that  a  shrewd  financier  will  in- 
crease his  subscription  to  some  enterprise  in  order  to 
induce  others  who  are  interested  in  the  same  enterprise 
to  increase  their  subscriptions?  Is  it  not  an  advantage, 
therefore,  to  the  members  of  an  assurance  company  con- 
ducted on  the  mutual  plan  like  the  Equitable,  not  to  see 
how  little  they  can  subscribe,  but  to  see  whether  by  join- 
ing their  fellow-members  in  putting  enough  capital  into 
the  enterprise  to  make  it  eminently  successful,  they  will 
not  reap  individually  a  far  richer  reward?  If  there  are 
three  hundred  thousand  members  in  a  life  company,  and 
if  you  are  a  policy-holder  in  that  company,  it  is  not  a 
very  important  matter  whether  your  premium  is  one 
dollar  over  or  one  dollar  under  a  given  amount.  But 
when  you  apply  a  difference  of  one  dollar  to  every  policy- 
holder,  it  makes  a  difference  of  $300,000,  and  it  may  be 
very  much  to  your  disadvantage  to  have  the  enterprise 
in  which  you  are  interested  deprived  of  that  amount  of 
working  capital.  On  the  other  hand,  it  may  be  greatly 
to  your  advantage  if,  instead  of  that  deficiency  of  $300,- 
ooo,  the  enterprise  should  have  the  use  of  an  additional 
capital  of  $300,000 — one  dollar  from  each  subscriber. 
This  argument  would  not  apply  to  a  policy-holder  in  a 
stock  company,  for  he  would  have  no  interest  in  profits. 
It  only  applies  to  a  company  conducted  on  the  mutual 
plan,  where  the  Surplus,  while  undivided,  is  held  for  the 


102  HOW  TO   SELL  ASSURANCE. 

protection  of  the  policy-holders  exclusively,  and  when 
divided  goes  to  the  policy-holders,  and  to  policy-holders 
only.  Business  men  all  the  world  over  recognize,  and 
will  always  recognize,  the  fact  that  there  are  a  great 
many  considerations  more  important  than  big  dividends 
and  low  initial  cost. 

In  the  same  way  the  offer  of  special  privileges  or  ex- 
cessive guarantees  may  be  met  by  comprehensive  argu- 
ments appealing  to  the  common  sense  and  experience  of 
practical  men.  The  Equitable  seeks  to  give  every  man 
every  advantage  that  he  can  be  offered  without  encroach- 
ing upon  the  rights  of  his  fellow-members.  If  more  than 
this  should  be  offered  to  a  new  policy-holder,  it  can 
readily  be  shown  that  the  offer  is  made  at  the  expense 
of  his  fellows ;  or  at  least,  that  the  other  policy-holders 
will  thereby  be  exposed  to  a  risk  which  will  threaten 
their  well-being.  Besides  this,  men  must  be  reminded 
that  every  new  policy-holder,  if  he  is  steadfast,  soon  be- 
comes an  old  policy-holder,  and  if  the  bait  used  to  hook 
him  has  been  denied  to  those  who  have  gone  before  him, 
he  must  expect  policy-holders  who  come  after  to  re- 
ceive favors  which  he  will  never  enjoy. 

The  Equitable  agent  should  never  be  content  to  let 
business  go  to  another  company  because  the  Society  re- 
fuses to  do  something  that  another  company  offers  to  do. 
There  are  innumerable  instances  where  other  companies 
have  sought  to  attract  applicants  by  offering  something 
which  they  knew  perfectly  well  they  had  no  business  to 


HOW  TO   SELL  ASSURANCE.  103 

offer,  and  would  never  have  thought  of  offering  if  they 
had  not  been  sure  that  it  was  something  which  the  Equi- 
table, in  its  adherence  to  scientific  principles,  would  re- 
fuse to  give. 


104  HOW  TO   SELL  ASSURANCE. 

CHAPTER  VI. 

SURPLUS. 

What  is  the  surplus  of  a  life  company  ?  Is  it  a  strange, 
weird,  mysterious,  abstruse  mathematical  quantity  about 
which  there  must  be  all  sorts  of  doubts  and  uncertain- 
ties, and  the  true  significance  of  which  can  only  be 
gathered  after  profound  research,  and  only  by  those  who 
have  rare  technical  scientific  knowledge  ?  It  would  seem 
so  from  the  talk  with  which  some  people  connected  with 
certain  life  companies  favor  the  public. 

But,  as  a  matter  of  fact,  the  surplus  of  a  life  company 
is  precisely  what  the  surplus  of  any  individual  is.  It  is 
nothing  more  nor  less  than  the  money,  or  property,  which 
the  company  holds  after  making  provision  for  all  its 
obligations.  It  is,  therefore,  the  most  important  part  of 
its  holdings.  It  measures  its  wealth,  its  strength,  the 
quality  of  its  management,  and  its  success. 

Recently  a  trust  company  and  a  large  banking  firm  in 
New  York  closed  their  doors.  Both  the  company  and  the 
firm  owned  property  worth  millions,  but  their  obliga- 
tions ran  into  the  millions  also,  and  exceeded  their  as- 
sets. In  other  words,  they  had  ceased  to  be  wealthy  be- 
cause they  lacked  surplus. 

The  man  who  puts  all  his  savings  into  a  house  valued 
at  $20,000  is  not  worth  that  sum  if  there  is  a  mortgage 


HOW  TO  SELL  ASSURANCE.  105 

on  the  house  of  $15,000.  His  wealth  is  represented  by 
his  surplus — the  difference  between  the  value  of  the 
house  and  the  amount  of  the  mortgage ;  namely,  $5,000. 

Do  not  let  interested  people  throw  dust  in  your  eyes. 
It  is  the  old  fable  of  the  fox  who  sneered  at  tails.  The 
people  who  have  sought  to  create  confusion  in  the  minds 
of  the  public  regarding  the  surplus  of  the  Equitable  are 
those  who  are  interested  in  companies  having  less 
strength  and  less  wealth — that  is  to  say,  less  surplus. 

"  But,"  some  one  says,  "  doesn't  the  surplus  of  a  life 
company  differ  from  the  surplus  of  a  business  firm  or 
an  individual  ?  Is  it  not,  in  fact,  a  liability  ?" 

Let  us  discuss  that  proposition :  The  surplus  of  a  com- 
pany, whose  business  like  that  of  the  Equitable  is  con- 
ducted on  the  mutual  plan,  is  in  a  certain  sense  a  liability. 
It  is,  so  to  speak,  an  item  of  liability  which  the  company 
is  responsible  for  to  those  inside  the  organization.  This 
is  essentially  true  of  such  a  company  as  the  Equitable, 
for  the  members  of  the  Society — the  policy-holders — 
constitute  the  company.  The  surplus,  therefore,  meas- 
ures their  wealth — the  surplus  fund  from  which  their 
dividends  are  drawn.  And  this  fund  is  invested  and  re- 
invested from  day  to  day  and  from  year  to  year  for 
their  further  enrichment.  Moreover,  it  measures  the 
value  of  the  guarantees  they  collectively  make  to  one 
another,  under  the  policy-contract  held  by  each  member. 

The  surplus  of  the  Equitable  is  in  this  sense  a  liability 
if  you  please,  and  no  agent  of  the  Society  need  hesitate 
to  acknowledge  the  fact,  because  that  acknowledgment 


106  HOW  TO   SELL  ASSURANCE. 

will  not  give  the  enemies  of  the  Society  a  crumb  of  con- 
solation, for  it  is  a  liability  of  an  altogether  different 
character  from  all  the  other  liabilities  of  the  company. 
Take  any  other  item  of  indebtedness;  the  only  way  to 
get  rid  of  it  is  by  paying  it.  But  if  the  whole  of  this 
surplus  should  be  annihilated,  that  would  not  impair  the 
solvency  of  the  company.  Why  ?  Because  all  the  other 
liabilities  of  the  company  are  backed  by  assets  sufficient 
to  discharge  them  to  the  uttermost  farthing.  And  if 
the  entire  surplus  should  be  annihilated,  it  is  even  con- 
ceivable that  the  company  could  still  continue  to  prosper ; 
might  build  up  new  strength ;  might  gradually  accumu- 
late a  new  surplus,  and  again  begin  to  pay  dividends  to 
policy-holders  from  that  new  accumulation.  But  the 
only  reason  that  surplus  could  thus  be  annihilated  with- 
out disaster  would  be  that  it  is  surplus  and  not  that  por- 
tion of  the  assets  necessary  to  provide  for  the  actual 
obligations  of  the  company. 

A  tree  is  known  by  its  fruits,  and  it  makes  mighty  lit- 
tle difference  what  surplus  is  called  if  it  exists.  It  is  to 
a  life  company  the  most  valuable  thing  in  the  world.  It 
is  its  wealth,  its  strength,  its  means  of  doing  the  greatest 
good  to  the  greatest  number.  Surplus  is  surplus.  Call 
it  "  surplus  liabilities  "  or  "  security-dividend  fund,"  or 
"  dividend  reserve,"  or  what  you  will.  What  it  is  called 
matters  not;  what  it  is  is  all  important. 

Some  companies  divide  their  surplus  up  into  different 
items  and  give  these  items  new  names — in  some  respects 
an  excellent  plan,  except  in  cases  where  the  effort  ap- 


HOW  TO   SELL  ASSURANCE.  107 

pears  to  be  to  conceal  the  truth  and  avoid  comparison  on 
this  important  point  with  the  Equitable.  But  it  is  nat- 
ural when  the  Equitable  comes  to  the  front  for  some  of 
the  other  companies  to  seek  to  divert  public  attention 
from  the  fact  that  the  Equitable's  surplus  is  the  largest. 


Io8  HOW  TO   SELL  ASSURANCE. 

CHAPTER  VII. 

THE  BEST  IS  THE  CHEAPEST. 

Men  do  not  prefer  assurance  that  does  not  assure. 
They  are  not  content  with  investments  which  cost  little 
in  the  beginning  but  will  certainly  prove  expensive  in 
the  end.  They  do  not  wish  to  be  cautious  in  making  in- 
vestments for  themselves,  and  reckless  in  making  invest- 
ments for  the  support  of  their  families.  On  the  con- 
trary, men  often  take  risks  with  temporary  investments 
which  they  would  not  take  with  permanent  investments. 

It  is  your  duty  to  educate  the  public;  and  if  you  do, 
you  will  reap  the  reward.  The  reason  men  of  means 
who  buy  assurance  do  not  always  take  the  best  (which 
is,  in  the  long  run,  the  cheapest),  is  because  they  have 
not  been  shown  that  it  is  the  best. 

The  startling  fact  has  been  demonstrated  that  many 
assurance  contracts  made  to-day  may  not  reach  a 
final  termination  until  the  twenty-first  century  has  been 
reached!  Make  no  mistake;  the  investor  in  life  assur- 
ance will  see  the  advantage  of  joining  the  company  that 
has  the  biggest  surplus,  if  you  give  him  a  few  pertinent 
facts  regarding  the  character  of  the  business  and  the 
nature  of  the  contract  he  is  entering  into.  It  is  the  ad- 
vocate of  the  less  successful  enterprise  (whether  it  be 


HOW  TO   SELL  ASSURANCE.  lo9 

life  assurance  or  something  else)  who  says  of  surplus: 
"  It  is  naught." 

The  contract  is  important;  but  the  company  that 
makes  the  contract  is  more  important;  and,  having 
found  the  best  company,  it  will  be  easy  to  select  an  ap- 
propriate contract.  And  the  premium  charged  and  the 
dividend  paid  will  become  secondary  considerations — 
although  it  by  no  means  follows  that,  because  the  com- 
pany is  the  best  and  its  assurance  is  the  safest,  its 
charges  will  be  the  highest. 

The  poor  need  assurance,  and  it  is  well  that  there  are 
strong  "  industrial  "  companies  that  issue  policies  for  an 
amount  as  small  as  fifty  or  one  hundred  dollars.  But,  as 
there  are  such  companies,  you  who  represent  the  Equi- 
table can  afford  to  pass  this  class  of  assurants  by,  and 
confine  your  efforts  to  men  who  are  able  to  take  $1,000 
or  $10,000,  or  $200,000  of  assurance. 

Some  people  may  believe  that  they  cannot  afford  any- 
thing but  shabby,  pinch-back,  bargain-counter  protec- 
tion. If  so,  they  are  to  be  pitied.  But,  as  you  represent 
a  company  that  grants  "  protection  that  protects,"  you 
can  afford  to  concentrate  your  attention  on  men  who  can 
afford  to  buy  the  best.  Hence,  your  shrewdest  course 
will  be  to  seek  out  the  capitalists  in  your  community — 
men  who  are  seeking  good  investments — who,  by  becom- 
ing members  of  the  Equitable  Society,  will  ally  them- 
selves with  other  strong  financiers  who  will  thus  get 
more  in  profits  in  the  long  run  than  those  who  can  only 


110  HOW  TO   SELL  ASSURANCE. 

afford  to  buy  what  costs  little  at  the  start,  and  which, 
for  that  very  reason,  is  lacking  in  quality,  will  not  wear 
well,  and  is  sure  to  give  way  if  a  heavy  and  unexpected 
strain  is  put  upon  it  during  some  period  of  financial 
disturbance. 


HOW  TO   SELL  ASSURANCE.  Ill 


CHAPTER  VIII. 

HOW  TO  COMPETE  WITH  "  CHEAP  "  ASSUR- 
ANCE. 

When  an  applicant  threatens  to  assure  with  some  as- 
sessment concern,  or  with  some  company  which  issues  a 
special  form  of  contract  which  seems  particularly  cheap, 
remember  that  no  assurance  can  in  the  long  run  cost  as 
little  as  a  participating  policy  issued  by  a  regular  com- 
pany on  the  mutual  basis,  provided  the  company  is  con- 
ducted economically.  The  Equitable  is  such  a  company, 
hence  every  agent  should  familiarize  himself  with  the 
comparisons  and  expense  ratios  issued  from  time  to  time 
by  the  Society. 

It  does  not  make  so  much  difference  what  the  amount 
of  the  annual  premium  may  be,  or  whether  the  reserve 
guaranteed  is  on  a  4  per  cent.,  or  ^/2  per  cent.,  or  J  per 
cent,  valuation,  as  does  the  ultimate  net  cost  of  the  as- 
surance as  shown  by  the  total  amount  paid  in  premiums 
compared  with  the  final  return  to  the  beneficiary.  For 
example,  the  holder  of  a  G.  C.  V.  policy  who  surrenders 
it  at  the  end  of  its  period  receives  the  full  value  of  the 
policy  proper  in  the  reserve,  and  his  full  share  of  the  sur- 
plus pro-fits  in  the  dividend  then  paid  to  him.  What  his 
full  share  is,  must,  of  course,  be  computed  by  the  Actu- 
aries of  the  Society.  No  life  assurance  company  could 
be  safely  and  properly  conducted  on  the  principle  of  al- 


112  HOW  TO   SELL  ASSURANCE. 

lowing  each  policy-holder  to  decide  for  himself  his  own 
share  of  profits,  because  some  policy-holders  might 
knowingly  demand  more  than  their  due,  while  others 
from  ignorance  of  the  science  of  life  assurance  might 
honestly  claim  more  than  they  are  entitled  to.  But  as 
a  matter  of  fact,  where  a  company  like  the  Equitable  is 
conducted  by  Directors  and  Officers  who  recognize  their 
responsibility;  who  are  conscientious,  and  jealous  of 
their  reputations,  and  who  transact  its  affairs  with  zeal, 
knowledge  and  intelligence,  no  policy-holder  need  have 
any  doubt  about  receiving  substantial  justice.  A  few 
timid  or  suspicious  policy-holders  here  and  there  may 
listen  to  the  specious  arguments  of  the  agents  of  as- 
sessment concerns  and  agents  of  companies  which  have 
not  been  economically  administered,  who  attempt  to 
break  down  the  force  of  the  supreme  advantage  enjoyed 
by  the  agents  of  the  Equitable  in  representing  a  com- 
pany with  a  larger  surplus  than  any  other  organization 
of  its  kind ;  but  the  agents  of  the  Equitable  should  have 
little  difficulty  in  exposing  the  true  inwardness  of  such 
attacks  when  dealing  with  reasonable  applicants.  When, 
for  example,  it  is  said  that  the  Equitable  has  a  larger 
surplus  than  other  companies  because  the  Society  de- 
prives policy-holders  of  a  part  of  the  money  which  should 
be  paid  them  in  dividends,  it  is  easy  to  show  that  this 
is  false,  and  that  the  large  surplus  of  the  Equitable  is 
due  to  altogether  different  causes ;  that  it  is  due  in  the 
first  place  to  good  management  under  which  by  care  in 
the  selection  of  risks,  care  in  the  investment  and  re- 


HOW  TO  SELL  ASSURANCE.  113 

investment  of  assets  and  discrimination  in  the  general 
conduct  of  the  business,  profits  are  earned  for  the  as- 
sured ;  and  that  it  is  due  in  the  second  place  to  the  fact 
that  the  bulk  of  its  business  is  transacted  on  the  de- 
ferred dividend  plan,  under  which  every  man  entitled 
to  profits  will  get  his  full  share,  but  will  not  receive  it 
until  his  share  is  due.  Meanwhile,  as  a  member  of  a 
company  conducted  on  the  mutual  plan,  he  enjoys  the 
protection  and  the  advantage  due  to  the  strength  and 
prosperity  resulting  from  the  great  surplus  fund  of  the 
Society;  and  he  may  congratulate  himself  on  the  fact 
that  not  only  are  the  Assets  of  the  Society  (covering  the 
reserves  on  all  its  policies),  invested  and  earning  in- 
terest, but  that  the  surplus  is  also  invested  and  is  earn- 
ing compound  interest  from  year  to  year. 

Now,  let  us  recur  again  to  the  argument  advanced 
above,  and  see  the  bearing  of  all  this  on  that  argument. 
We  have  said  that  if  the  business  is  economically  con- 
ducted on  the  mutual  plan,  and  if  the  policy-holder  at 
the  end  of  the  accumulation  period  receives  the  full  re- 
serve and  his  full  share  of  the  surplus  over  and  above 
the  reserve,  he  will  necessarily  find  that  his  assurance 
has  been  given  to  him  practically  at  cost ;  that  is  to  say, 
after  the  Society  has  provided  for  death  claims  and  ex- 
penses, the  ultimate  cost  of  his  assurance  is  reduced  to 
a  minimum  by  the  return  to  him  of  his  full  share  of  the 
profits  of  the  business  resulting  from  over-payments  in 
premiums,  increased  by  interest  and  profits  of  all  kinds. 


114  HOW  TO   SELL  ASSURANCE. 


CHAPTER   IX. 

AN    ASSESSMENT    COMPANY     SHOULD     BE 
AVOIDED  EVEN  AFTER  IT  HAS 
REFORMED. 

Sometimes  an  assessment  concern  advertises  that  it 
has  changed  the  method  of  conducting  its  business,  and 
that  it  is  prepared  to  issue  assurance  on  the  level  pre- 
mium plan.  If  you  strike  an  applicant  who  is  attracted 
by  such  an  advertisement,  you  can  easily  show  him  that 
if  a  level  premium  is  charged  by  an  assessment  con- 
cern, and  if  the  premium  is  adequate,  the  assurance 
will  be  offered  to  him  on  substantially  the  same  basis 
as  by  a  regular  company,  and  that  consequently  it  is 
folly  for  him  to  assure  with  a  weak  assessment  concern, 
when  he  can  buy  the  same  thing  from  a  regular  com- 
pany with  a  large  surplus.  If,  on  the  other  hand,  the 
assessment  concern  claims  to  issue  its  policy  on  a  level 
premium,  but  at  a  rate  much  less  than  that  charged  by 
regular  companies,  it  will  be  obvious  that  the  premium 
is  inadequate,  and,  although  on  a  less  dangerous  basis 
than  the  ordinary  assessment  plan,  does  not  go  far 
enough  to  be  safe. 


HOW  TO  SELL  ASSURANCE.  115 

A  COMPANY  DOING  ALL  ITS  BUSINESS  ON  ONE  PLAN 
EXPOSES  ITSELF  TO  DANGER. 

Sometimes  a  company  does  all  its  business  on  a  special 
form  and  you  say  to  the  applicant :  "  That  company  is 
not  very  strong ;  if  you  must  have  that  kind  of  a  policy, 
why  not  take  it  with  the  Equitable?  The  Equitable  is- 
sues a  policy  of  that  kind  occasionally."  There  is  no 
real  inconsistency  in  this.  There  are  contracts  which,  if 
issued  exclusively,  are  injurious  to  a  company,  but  which, 
if  counterbalanced  by  contracts  of  a  different  character, 
are  safe  and  advantageous  to  the  company.  Let  me  il- 
lustrate : — 

A  company,  transacting  all  its  business  exclusively  on 
the  Renewable  Term  Plan,  under  which  assurance  can 
be  dropped  without  great  sacrifice,  might  reach  a  period 
of  special  strain  when  the  business  on  its  books  would 
be  quickly  disintegrated  and  new  assurers  would  be  un- 
willing to  patronize  it.  The  result  would  be  either  that 
the  company  would  suffer  heavy  losses,  or  be  forced  to 
close  its  doors.  A  company  like  the  Equitable,  however, 
the  bulk  of  whose  business  is  on  the  level  premium  plan, 
could  not  be  thus  influenced  by  a  few  scattering  policies 
issued  on  the  Renewable  Term  Plan. 

In  fact,  it  is  a  distinct  advantage  not  to  have  the  busi- 
ness of  one  class  exclusively,  just  as  it  might  steady  and 
benefit  a  ship  to  carry  a  few  tons  of  iron  if  the  rest  of 
its  cargo  should  be  cotton,  whereas,  the  same  ship  might 
go  down  in  a  storm  if  the  entire  cargo  were  of  iron. 


1 1 6  HOW  TO   SELL  ASSURANCE. 


CHAPTER  X. 

ADVISE  YOUR  CLIENT  AGAINST  GAMBLING 
WITH  WHAT  HE  SAVES  FOR  HIS  FAM- 
ILY, AND  SHOW  HIM  HOW  HE 
CAN    FREE   HIS    MIND 
FROM    ANXIETY. 

A  great  many  men  are  attracted  to  this  or  that  com- 
pany because  a  policy  is  offered  to  them  at  what  seems 
to  be  a  low  rate,  and  because,  in  addition,  it  is  repre- 
sented to  them  that  the  company  has  paid,  or  is  paying, 
or  expects  to  pay,  very  large  dividends.  Such  a  man 
is  very  likely  to  argue  in  this  way :  "  Perhaps  this  is  not 
a  very  strong  or  a  very  well  managed  company,  or  a 
very  good  form  of  policy ;  but  it  seems  to  be  cheap,  and 
my  need  for  life  assurance  is  only  temporary,  and  I 
will  take  my  chances!"  Let  us  assume  that  no  serious 
disaster  results.  It  does  not  follow  from  this  that  it  was 
a  shrewd  act  to  take  such  a  policy,  for  it  is  very  likely 
to  turn  out  that,  through  mismanagement  or  misfortune, 
or  lack  of  confidence  among  the  policy-holders,  or  im- 
perfections in  the  policy  itself,  the  ultimate  result  will 
turn  out  to  be  very  unsatisfactory.  The  company  may 
not  fail,  but  it  may  meet  with  serious  losses  which  will 
force  it  to  pay  little  or  nothing  in  dividends,  or  perhaps 
only  a  part  of  the  risk  assumed  will  be  paid,  or  for  some 
reason  or  other  it  may  turn  out  that,  compared  with  the 


HOW  TO   SELL  ASSURANCE.  117 

total  outlay,  the  return  will  be  altogether  inadequate ;  in 
other  words,  that  the  cost  of  the  assurance  will  be  ex- 
travagantly high  instead  of  abnormally  cheap. 

Life  assurance  is  like  other  branches  of  business.  A 
reputable  coal  merchant  who  has  a  reputation  to  main- 
tain will  sell  you  a  ton  of  coal  at  a  certain  price.  Some 
irresponsible  dealer  can  always  be  found  who  will  offer 
to  supply  the  "  same  thing  "  at  a  lower  price,  but  if  that 
offer  is  accepted  the  purchaser  will  often  find  that  his 
coal  has  cost  him  more  than  he  would  have  paid  if  he 
had  taken  it  from  a  reputable  dealer.  He  may  not  dis- 
cover this  in  the  beginning,  but  later  on  he  may  find  that 
only  three-fourths  of  a  ton  have  been  delivered,  or  that 
part  of  the  weight  is  made  up  of  dust  which  will  not 
burn,  or  that  an  inferior  grade  of  coal  has  been  substi- 
tuted for  what  he  expected  to  receive.  Besides,  a  man 
should  be  more  particular  about  life  assurance  than  about 
any  other  of  his  investments.  He  may  not  be  able  to  cor- 
rect a  blunder  made  in  the  selection  of  a  life  company, 
or  he  may  never  know  that  he  has  made  a  blunder,  but 
his  executors  are  likely  to  find  it  out  and  his  wife  and 
children  are  the  ones  who  will  suffer.  But  do  not  make 
the  mistake  of  pushing  this  argument  too  far.  It  does 
not  follow  because  a  thing  is  the  best  of  its  kind  that  it 
necessarily  costs  more  than  an  inferior  article.  It  is  true, 
as  we  have  seen,  that  an  unprincipled  dealer  can  afford 
to  underbid  a  reputable  merchant  by  substituting  an 
inferior  article  for  one  which  is  superior,  but  other  things 
being  equal,  the  intelligent  investor  in  life  assurance 


Il8  HOW  TO   SELL  ASSURANCE. 

should  select  the  Equitable  not  only  because  its  assurance 
is  of  the  best,  but  because  the  company  is  so  conducted 
that  he  will  pay  a  minimum  price  for  it  in  the  long  run. 

This  suggests  another  train  of  thought.  Let  us  grant, 
for  the  sake  of  argument,  that  a  man  can  obtain  life  as- 
surance from  some  other  company  at  a  lower  premium 
rate  than  that  charged  by  the  Equitable,  which  under 
normal  conditions  if  times  are  prosperous  will  serve  its 
purpose  fairly  well,  but  which,  even  if  the  ultimate  result 
is  satisfactory,  will  cause  the  purchaser  a  great  deal  of 
anxiety  and  trouble  from  time  to  time  if  the  prosperity 
of  the  company  is  threatened  by  storms  through  which 
it  is  forced  to  pass.  Is  it  worth  while  to  suffer  such 
anxiety  when  assurance  may  be  obtained  at  a  moderate 
cost  from  such  a  company  as  the  Equitable  ?  Is  it  wise 
to  go  to  sea  in  a  ship  which  will  be  certainly  safe  */  the 
weather  be  fair,  but  which  may  go  to  the  bottom  if  a 
storm  is  encountered? 


HOW  TO   SELL  ASSURANCE.  119 


CHAPTER  XL 

REMIND  YOUR  CLIENT  THAT  "  SAUCE  FOR 
THE  GOOSE  IS  SAUCE  FOR  THE  GANDER." 

If  you  can  get  an  applicant  to  exercise  ordinary  com- 
mon sense  in  dealing  with  life  assurance,  you  can  assure 
him  in  the  Equitable,  where  otherwise  he  might  go  to 
some  other  company.  For  example,  let  us  assume  that 
you  are  dealing  with  a  banker  whose  money  is  invested 
in  stocks  and  bonds.  If  he  is  attracted  by  some  inferior 
grade  of  assurance  because  he  believes  it  to  be  cheap, 
you  can  show  him  that  if  he  selects  his  life  assurance  as 
he  selects  his  stocks  and  bonds,  he  will  avoid  this  cheap 
assurance.  He  ought  to  be  more  conservative  in  pur- 
chasing life  assurance  than  in  purchasing  stocks  and 
bonds,  because  it  is  much  easier  to  change  investments 
of  the  latter  character  than  to  make  a  change  in  an  in- 
vestment in  life  assurance.  In  fact,  many  a  time  the 
conditions  are  such  that  a  change  of  policy  becomes  im- 
possible. If  this  banker  holds  a  block  of  bonds  which  he 
has  bought  at  a  premium  above  par  when  the  market  is 
full  of  bonds  selling  at  varying  prices  below  par,  he 
cannot  fail  to  recognize  that  in  that  investment  he  has 
not  confined  his  attention  to  the  initial  cost  and  the  prom- 
ises set  forth  in  the  bond.  He  has  gone  further,  and 
(if  he  allows  his  mind  to  run  back  over  the  motives 


120  HOW  TO   SELL  ASSURANCE. 

which  prompted  his  action)  he  will  be  forced  to  admit 
that  he  selected  the  investment  because  he  believed  that 
in  some  way  it  would  be  directly  or  indirectly  of  greater 
advantage  to  him  to  own  those  particular  bonds  than  to 
invest  his  money  in  something  at  a  lower  price.  Hence, 
he  should  assure  with  the  Equitable;  (i)  because  he  will 
surely  get  the  worth  of  his  money;  and  (2)  because  the 
ultimate  cost  will  be  the  very  lowest  that  assurance  of 
the  first  quality  can  be  bought  for  in  any  market. 

Since  writing  the  above  a  significant  illustration  has 
fallen  under  my  eye.  It  is  a  newspaper  advertisement 
describing  a  policy  issued  by  a  certain  company,  not  an 
assessment  concern  but  a  regular  life  assurance  com- 
pany. The  policy  referred  to  is  for  $10,000,  ten-pay- 
ment life,  age  30,  annual  premium  $375.80.  Analyzing 
this  policy  our  Actuaries  find  that  the  gross  premium 
charged  is  actually  less  than  the  4%  net  rate,  Actuaries' 
Table  (the  table  by  which  that  company's  policies  are, 
valued).  In  other  words,  there  is  no  margin  for  ex- 
penses, although  the  actual  expenses  of  the  company 
are  nearly  36%  of  the  premiums  received! 

It  would  be  improper  and  unsafe  for  a  strong  com- 
pany like  the  Equitable  to  offer  assurance  on  such  a 
basis  as  this,  and  yet  the  company  in  whose  behalf  this 
offer  seems  to  have  been  made  is  a  small  and  a  weak 
organization.  The  policy  contains  all  sorts  of  attractive 
promises,  but,  according  to  the  Actuaries'  Table,  the 
premium  charged  is  not  sufficient  to  pay  death  claims, 
let  alone  the  expenses  of  conducting  the  business;  and 


HOW  TO  SELL  ASSURANCE.  12 1 

if  such  a  company  should  get  into  trouble  and  the  good 
risks  should  desert,  and  new  and  healthy  lives  should 
fail  to  come  in,  the  death  rate,  instead  of  continuing  on 
a  normal  basis,  would  become  excessive  and  the  com- 
pany would  fail  from  that  cause  alone.  And  yet  the 
investor  who  is  looking  for  assurance  at  the  lowest 
initial  cost,  and  who  takes  nothing  else  into  considera- 
tion, would  select  the  policy  here  described  in  preference 
to  a  policy  issued  by  the  Equitable ! 

Many  railroads  have  issued  4%  bonds  which  are  listed 
on  the  Stock  Exchange.  All  the  bonds  produce  the  same 
income,  and  it  is  probable  that  all  will  pay  the  same 
amount  of  principal  at  maturity.  Yet  the  market  price 
of  these  bonds  at  the  present  time  varies  greatly.  Why  ? 
Because  of  the  difference  in  the  financial  strength  of  the 
companies  back  of  the  bonds.  If  life  assurance  were 
sold  on  the  Stock  Exchange,  the  policies  of  the  Equitable 
would  sell  at  higher  prices  than  those  of  other  com- 
panies, because  its  financial  strength  is  greater  than  that 
of  any  other  company. 


122  HOW  TO   SELL  ASSURANCE. 

CHAPTER  XII. 

BETTER  THAN  A  GOVERNMENT  BOND. 

I  have  no  idea  how  many  editions  have  been  printed 
and  how  many  hundreds  of  thousands  of  copies  of  the 
little  pamphlet  entitled  "  Better  Than  a  Government 
Bond  "  have  been  circulated,  but  I  do  know  that  it  has 
been  one  of  the  most  popular  and  valuable  short  docu- 
ments ever  issued  by  the  Society. 

It  has  been  suggested  that  the  argument  embodied  in 
that  pamphlet  can  be  used  with  peculiar  advantage  in 
offering  the  Gold  Bond  Policy,  hence  I  call  your  atten- 
tion to  the  following  development  of  that  argument. 

The  United  States  Government  3%  Bonds  issued  in 
1898  have  sold  as  high  as  107.  They  were  nominally 
twenty-year  bonds  but  could  have  been  redeemed  at  the 
option  of  the  Government  in  ten  years ;  if  redeemed  in 
ten  years  from  issue,  they  would  at  this  price  net  less 
than  i.g%  on  the  investment;  if  allowed  to  run  twenty 
years,  they  would  net  2.53%.  The  only  $%  Govern- 
ment Bonds  now  in  existence  have  only  one  and  a  half 
years  to  run  and  sell  at  106,  thus  yielding  about  1.78% 
interest  on  the  investment.  If  these  $%  Bonds  had 
twenty  years  to  run  they  would  sell  at  148,  for  at  that 
figure  they  would  yield  1.78%,  and  $10,000  of  them 
would  cost  $14,800.  Compare  this  with  $10,000  of  our 


HOW  TO   SELL  ASSURANCE. 


123 


Gold  Bonds  which  would  cost  $14,120  ($680  less  than 
the  Governments),  payable  in  twenty  instalments  of 
$706.00  each,  provided  the  purchaser  happened  to  be  40 
years  of  age. 

The  fact  that  the  purchaser  can  pay  for  them  in  in- 
stalments makes  them  infinitely  better  than  Government 
Bonds,  because  he  can  buy  a  much  larger  amount.  But 
that  is  not  all.  The  Bonds  are  insured.  For,  if  the 
purchaser  should  die  before  the  end  of  the  twenty  years 
during  which  the  instalments  are  being  paid,  the  cost  of 
the  Bonds  will  be  reduced  by  the  exact  number  of  instal- 
ments which  have  not  fallen  due.  This  is  shown  by  the 
following  table: 

COST  OF  $10,000  OF  EQUITABLE  5$  GOLD  BONDS 

WITH  20  YEARS  TO   RUN.      AGE  40. 

If  the  investor  dies  during  the  ist  year,  the  total  cost  will  be  $  706.00 


2d  year,    ' 

4 

4 

1      1,412.00 

3d  year, 

• 

1      a,  118.00 

4th  year,    ' 

4 

'      2,824.00 

5th  year,    ' 

* 

4      3,530.00 

6th  year, 

1 

4,236.00 

7th  year, 

1 

4,942.00 

8th  year, 

1 

5,648.00 

gth  year, 

1 

6,354.00 

xoth  year, 

1 

7,060.00 

nth  year, 

• 

7,766.00 

i2th  year, 

1 

8,472.00 

i3th  year, 

• 

9,178.00 

i4th  year, 

« 

9,884.00 

iSth  year, 

4 

10,590.00 

1  6th  year, 

1 

11,296.00 

i7th  year, 

4 

12,002.00 

i8th  year, 

i 

I2,708.00 

1  9th  year, 

i 

13.414.00 

If  he  lives  to  the  end  of  the  2oth  year,  the  cost  will  be  $14,120.00,  less  dividend. 


124  HOW  TO   SELL  ASSURANCE. 

Contrast  this  with  the  5%  Governments  with  20  years 
to  run.  Let  us  assume  (for  the  sake  of  comparison) 
that  $10,000  of  these  Governments  could  be  bought  on 
the  instalment  plan.  What  would  be  the  result  in  the 
event  of  the  purchaser's  death  during  the  first  year? 
He  would  have  paid  one-twentieth  of  $14,800,  namely, 
$740.  Consequently  to  secure  title  to  the  Bonds,  his  es- 
tate would  be  forced  to  pay  the  balance — $14,060;  or 
failing  in  that,  the  estate  would  be  forced  to  relinquish 
all  claim  to  $9,500  of  the  Bonds  and  be  the  happy  pos- 
sessor of  one  $500  Bond. 

But  someone  may  say,  "  As  these  Bonds  are  pro- 
tected by  insurance,  would  not  the  cost  be  higher  if  the 
purchaser's  age  is  above  forty?"  The  answer  to  this 
is :  "  Yes."  But  it  is  equally  true  that  if  the  age  be 
under  forty,  the  cost  of  the  Bonds  is  correspondingly 
reduced.  Bear  in  mind  also  that  the  slight  additional 
charge  for  the  insurance  if  the  age  is  above  forty  is  a 
reasonable  charge,  and  if  taken  into  account  must  be  off- 
set by  the  two  following  important  considerations :  ( I ) 
The  enormous  reduction  in  the  total  cost  of  the  Bonds 
if  death  should  come  prematurely,  and  (2)  the  very 
material  reduction  in  the  cost  which  every  purchaser 
has  a  right  to  expect  in  the  shape  of  a  cash  dividend  after 
all  twenty  of  his  instalments  have  been  paid.* 


*See  the  dialogue  in  Chapter  XV  which  carries  this  compari- 
son a  step  further.  Note  the  surprising  fact  that  as  the  age  of 
the  investor  increases,  the  cost  of  the  Bonds  grows  less,  if  the 
value  of  the  assurance  is  taken  into  consideration. 


HOW  TO   SELL  ASSURANCE.  125 


CHAPTER  XIII. 

THE  PREVAILING  LOW  RATE  OF  INTEREST 
IS  MONEY  IN  THE  AGENT'S  POCKET. 

You  may  think  the  assertion  paradoxical  that  the  low 
rate  of  interest  now  attainable  on  first-class  investments 
is  a  boon  to  the  life  assurance  agent,  but  this  is  literally 
true,  provided  the  agent  has  wit  enough  to  profit  by  the 
fact. 

Agents  who  represented  the  Equitable  in  1859  were 
satisfied  with  $10,000  applications.  In  those  days  capi- 
talists were  not  in  the  habit  of  taking  policies  for  one  or 
two  hundred  thousand  dollars,  for  investment.  One  rea- 
son for  this  was  that  the  legal  rate  of  interest  in  this 
State  was  then  7% ;  and  it  was  then  easier  to  invest 
money  in  the  safest  and  most  conservative  ways  at  J% 
than  it  is  to  invest  it  with  equal  security  to-day  at  $% 
or  4%.  This  is  one  reason  why  the  Equitable  agent  to- 
day has  such  a  special  advantage.  Many  an  application 
is  readily  obtained  for  a  large  amount  which  men  would 
not  consider  for  a  moment  if  they  could  get  6%  or  J% 
on  gilt-edged  investments. 

Look  at  the  question  from  another  point  of  view.  In 
1859  many  a  man  with  a  capital  of  $100,000  had  no  ap- 
prehension about  the  future  of  his  family,  believing  that 
in  the  event  of  his  death  his  wife  and  children  would 


126  HOW  TO   SELL  ASSURANCE. 

have  a  certain  income  of  six  or  seven  thousand  dollars 
a  year.  To-day  the  man  who  is  worth  $100,000  knows 
that  in  the  event  of  his  death  his  family  will  have  only 
half  as  much  to  live  on  as  would  have  been  the  case  forty 
or  fifty  years  ago,  and  yet  the  cost  of  living  has  doubled. 
Here  again  the  competent  agent  will  see  his  opportunity. 

Follow  up  all  the  prosperous  men  who  have  laid  some- 
thing by,  but  who  are  not  millionaires,  and  in  many  cases 
you  will  find  that  they  are  loaded  down  with  care  and 
anxiety  which  you  can  instantly  remove.  In  other  cases 
you  will  find  that  these  men  have  not  waked  up  to  the 
real  significance  of  the  situation.  You  will  find  many  a 
man  who  accumulated  capital  a  number  of  years  ago, 
who  figured  out  at  the  time  that  this  capital  would  be 
a  sufficient  protection  for  his  family.  To-day  that  man 
has  perhaps  retained  his  capital  intact  without  adding 
anything  to  it,  but  does  he  realize  that,  in  order  to  pro- 
duce the  income,  he  needs  double  the  capital  which  he 
needed  not  many  years  ago  ?  How  is  he  to  make  up  this 
deficiency?  He  is  older  than  he  was,  and  has  reached 
an  age  when  he  wants  to  live  comfortably  and  does  not 
want  to  work  as  hard  as  he  did.  You  have  only  to  show 
such  a  man  that  a  few  hundred  dollars  from  his  income 
every  year  invested  in  a  Gold  Bond  contract,  or  a  Con- 
tinuous Instalment  Policy,  or  some  other  appropriate 
contract  of  assurance,  will  instantly  solve  this  difficult 
problem. 

If  you  are  interested  in  this  subject  (and  if  you  are 


HOW  TO   SELL  ASSURANCE.  127 

a  life  agent  it  cannot  fail  to  interest  you)  you  may  find 
it  profitable  to  follow  the  arguments  contained  in  the 
next  chapter. 


12  8  HOW  TO  SELL  ASSURANCE. 


CHAPTER  XIV. 

HOW  A  MAN  CAN  KEEP  THE  INCOME  ON  HIS 
INVESTMENTS   FROM   SHRINKING. 

The  man  described  in  the  last  chapter  who  is  anxious 
lest  his  capital  may  prove  inadequate  for  the  support  of 
his  family  in  the  event  of  his  death,  will  do  well  to  con- 
sider the  advantage  of  investing  in  a  block  of  Gold 
Bonds.  (Or,  he  may  be  so  situated  as  to  find  a  Contin- 
uous Instalment  Policy  more  appropriate,  (i)  because 
the  investment  is  permanent,  with  no  necessity  for  re- 
investing the  funds  from  time  to  time,  at  lower  and 
lower  rates  of  interest,  and  (2)  because  there  can  conse- 
quently never  be  any  shrinkage  in  income,  for  the  in- 
come is  not  limited  to  twenty  years,  but  will  continue 
un diminished  during  the  lifetime  of  the  beneficiary.) 

Let  us  consider  a  Gold  Bond  contract  (20- Year  En- 
dowment form)  for  $10,000  entered  into  by  the  Society 
with  a  man  twenty-one  years  of  age. 

He  pays  the  Society  in  advance  $650.90,  in  considera- 
tion of  which  he  receives 

A  CONTRACT  OF  SALE 

EMBODYING  THE  FOLLOWING  ADVANTAGES  I 

i.  He  is  given  a  clear  title  to  ten  coupon  bonds  (of 
the  denomination  of  $1,000  each)  par  value  $10,000; 


HOW  TO  SELL  ASSURANCE.  129 

subject  to  his  agreement  to  pay  the  balance  of  the  pur- 
chase money  ($12,367.10)  in  nineteen  annual  instal- 
ments of  $650.90  each. 

N.  B. — Until  paid  for,  these  bonds  will  remain  in  the 
custody  of  the  Society. 

2.  If  the  investor  dies  before  the  completion  of  the 
preliminary  contract,  the  total  cost  of  the  investment  will 
be  reduced  by,  so  to  speak,  crediting  his  estate  with  such 
unpaid  instalments  as  have  not  fallen  due.  If,  therefore, 
he  dies  prematurely,  this  stipulation  will  result  in  an 
enormous  saving  to  his  estate ;  and  in  the  event  of  his 
death  at  any  time  before  the  last  instalment  falls  due 
there  will  necessarily  be  some  saving,  as  the  following 
table  shows : — 

REDUCTION  IN  COST  OF  $10,000  OF  BONDS 
In 


JUN    %»AaB    vf    jjn/iin* 

case  of  death  during  the  ist  year,  the  saving  would 

be  $12,367.10 

"       ad   year,        " 

11,716.20 

11       ad   year,        " 

'        11,065.30 

14      4th  year,       " 

10,414.40 

"      sth  year,       *' 

9,763-50 

14                       "      6th  year,        " 

9,112.60 

7th  year,       " 

'          8,461.70 

'*                      u      Sth  year,       " 

4          7,810.80 

gth  year,        *' 

7,159.90 

1     ioth  year,        " 

6,509.00 

"     itth  year,       " 

1         5,858.10 

44     i2th  year,        " 

4          5,207.20 

44     isth  year,       " 

4,556.30 

"     i4th  year,        " 

3,905.40 

"                      "     isth  year,       " 

3»254.5o 

"                     '  "     i6th  year,        " 

2,603.60 

"                      "    i?th  year,       " 

*          1,952-70 

"     i8th  year,       *' 

1,301.80 

'    igth  year,       " 

650.90 

130  HOW  TO  SELL  ASSURANCE. 

Remember  that  the  foregoing  table  records  only  a 
part  of  the  advantage,  because  at  whatever  time  the 
bonds  are  deliverable,  their  market  value  will  be  in  ex- 
cess of  their  face  value. 

3.  If  living  at  the  end  of  the  twenty  years  (all  twenty 
instalments  having  then  been  paid)  the  bonds  will  be 
immediately  delivered  to  the  investor  himself.     Then, 
if  he  retains  them,  he  will  be  certain  of  an  income  of  5% 
for  twenty  years,  at  the  end  of  which  time  he  will  re- 
ceive $10,000  in  gold  to  be  reinvested  in  any  way  he  sees 
fit.     Or  if,  instead  of  retaining  the  bonds,  he  should 
determine  to  sell  them,  he  will  be  able  to  dispose  of 
them  at  a  premium. 

4.  In  addition  to  this,  in  view  of  the  fact  that  the 
business  of  the  Equitable  is  conducted  on  the  mutual 
plan,  the  purchaser  will  receive  with  his  bonds  at  the  end 
of  the  twenty  years  a  dividend  of  surplus-profits. 

It  would  be  a  great  satisfaction  to  the  Society,  to  the 
agent,  and  to  the  purchaser,  if  the  amount  of  this  divi- 
dend could  be  stated  in  the  beginning,  for  then  the  exact 
amount  could  be  deducted  from  the  purchase  price,  thus 
showing  in  advance  the  net  cost,  but  whatever  the 
amount  of  the  future  dividend  may  be,  its  value  must 
not  be  overlooked  by  the  purchaser  in  considering  the 
advantages  of  this  form  of  investment. 

Turning  again  from  Gold  Bonds  to  the  Continuous 
Instalment  policy,  note  how  strong  and  how  numerous 
are  the  arguments  in  favor  of  that  contract  as  compared 
with  ordinary  investments.  If  a  man  buys  a  block  of 


HOW  TO  SELL  ASSURANCE.  131 

bonds,  or  puts  his  money  out  on  bond  and  mortgage, 
the  time  is  sure  to  come  sooner  or  later  when  the  money 
will  fall  in  and  must  be  reinvested,  and  it  is  morally 
certain  that  when  that  time  comes  (i)  it  will  be  harder 
than  it  is  to-day  to  find  a  satisfactory  channel  for  rein- 
vesting the  money,  and  (2)  the  rate  of  interest  attain- 
able will  be  lower  than  is  the  case  to-day.  Again,  there 
is  a  chance  that  when  that  time  comes,  the  person  who 
made  the  original  investment  will  be  dead;  and  it  is  a 
question  whether  his  wife  or  children  for  whom  the 
investment  has  been  made  will  have  the  same  facilities, 
or  the  same  business  experience  to  guide  them.  More- 
over, there  is  always  a  danger  that  persons  thus  sit- 
uated may  either  allow  the  money  to  lie  idle,  or  squander 
the  whole  or  a  part  of  it,  and  thus  be  deprived  of  the 
whole  or  a  part  of  the  income  necessary  for  their  future 
support.  Contrast  this  with  the  result  where  the  hus- 
band or  father  has  purchased  for  his  wife  or  daughter, 
or  some  other  dependent,  a  Continuous  Instalment  Pol- 
icy. The  gross  price  varies,  of  course,  according  to 
age,  but  the  amount  of  this  gross  price  is  in  every  case 
absolutely  known  in  advance.  The  net  price  can  only  be 
determined  at  the  death  of  the  assured,  or  at  the  end  of 
the  accumulation  period  when  the  dividend  accrues  and 
reduces  the  cost  of  the  investment.  But  as  far  as  the 
beneficiary  is  concerned  there  can  be  no  uncertainty.  No 
time  will  come,  either  at  the  end  of  twenty  years,  or  at 
any  other  time,  when  it  will  be  necessary  to  look  for  a 
new  channel  for  investment.  If  the  income  guaranteed 


I32  HOW  TO   SELL  ASSURANCE. 

under  the  contract  in  the  beginning  is  $500,  or  $1,000, 
or  $5,000,  that  amount  will  be  paid  the  beneficiary  with 
absolute  certainty  for  life,  even  if  the  beneficiary  should 
live  to  be  a  hundred  years  old.  Whatever  the  future 
rate  of  interest  realized  on  ordinary  investments  may  be, 
there  can  be  no  diminution  in  the  income  from  this  in- 
vestment. If  it  is  $500  in  the  beginning,  it  will  be  $500 
forty  years  later  if  the  beneficiary  lives  that  long.  There 
can  be  no  danger  of  any  temporary  suspension  of  in- 
come. There  can  be  no  danger  of  any  shrinkage.  There 
can  be  no  danger  that  the  money  will  lie  idle  and  the 
income  be  intermittent.  There  can  be  no  danger  that 
loss  will  occur  in  changing  from  one  form  of  investment 
to  another.  The  income  is  guaranteed  by  the  Equitable 
— "  THE  STRONGEST  IN  THE  WORLD  " — and  whatever  un- 
certainty there  may  be  about  the  other  property  of  this 
investor,  this  he  may  be  sure  is  guarded  and  protected 
in  a  way  which  is  as  absolute  and  complete  as  anything 
human  can  possibly  be. 

ANNUITIES. 

There  is  another  form  of  investment  which  every  rep- 
resentative of  the  Equitable  ought  to  keep  constantly  in 
mind,  and  to  which  the  arguments  used  above  apply  with 
equal  force,  namely,  to  Annuities.  Have  you  looked  into 
the  great  variety  of  Annuities  issued  by  the  Equitable : 
Joint  Life  Annuities ;  Deferred  Annuities  which  may  be 
paid  for  in  annual  instalments  and  which  begin  to  yield 
enormous  rates  of  interest  after  an  interval  of  years; 


HOW  TO  SELL  ASSURANCE.  133 

Annuities  applied  for  by  an  investor  but  based  on  the 
life  of  his  wife  or  daughter,  or  some  other  dependent? 
Remember  that  in  a  case  where  a  man  applies  for  assur- 
ance and  is  unable  to  pass  a  satisfactory  examination, 
the  agent  can  often  save  his  customer  by  advising  him 
to  take  an  Annuity  on  his  own  life,  which  requires  no 
examination  and  will  give  him  support  during  his  old 
age,  or  on  the  life  of  his  wife  or  daughter  to  give  her 
an  income  for  life  after  his  death. 


134  HOW  TO   SELL  ASSURANCE 

CHAPTER  XV. 
A  GOLDEN  OPPORTUNITY. 

HOW  TO  SELL  GOLD  BONDS. 

It  is  riot  to  be  supposed  that  the  adroit  agent  will  find 
it  necessary  to  talk  as  much  as  the  agent  figuring  in  the 
following  dialogue.  It  has  been  written  rather  to  train 
the  mind  than  the  tongue.  If  the  agent  gets  all  the  argu- 
ments fixed  in  his  mind,  logically  and  chronologically, 
he  can  in  conversation  select  those  which  will  best  serve 
his  purpose.  The  facts  in  this  dialogue  are  all  stated 
elsewhere,  but  here  they  are  brought  together  in  reg- 
ular sequence.  SCENE  I 

CAPITALIST'S  OFFICE. 


Capitalist — So  you  want  to  sell  me  some  of  your  Gold  Bonds  ? 

Agent — Yes,  and  I  intend  to  make  you  a  proposition  which 
you  can't  afford  to  decline. 

Capitalist — What  is  your  offer? 

Agent — I  can  sell  you  a  block  of  $200,000  of  bonds,  or  $100,- 
ooo,  or— 

Capitalist — But  I  have  only  seven  thousand  dollars  to  invest. 

Agent — You  are  about  thirty  years  of  age  ? 

Capitalist — I  was  thirty-five  last  October.  But  what  has  that 
got  to  do  with  it  ? 

Agent — I'll  explain  later  on.  But  first  let  me  show  you  that 
these  are  the  best  bonds  in  the  market  and  that  you  can  secure 
them  at  a  bargain. 

Capitalist— What  is  the  price? 

Agent — The  rate  is  $68.22  per  thousand.*  If,  therefore,  you 
will  pay  me  $6,822  you  can  have  $100,000  of  bonds. 


*  Twenty  Year  Endowment  form;  age  35,  premium  $68.23. 


HOW  TO   SELL  ASSURANCE.  135 

Capitalist — I  don't  understand. 

Agent— Let  me  explain.  If  you  buy  these  Bonds,  you  need 
not  pay  for  them  in  advance.  It  will  only  be  necessary  at  pres- 
ent to  pay  one-twentieth  part  of  the  purchase  price.  If,  there- 
fore, you  are  prepared  to  pay  the  first  instalment  to-day 
($6,822),  I  will  give  you  a  full  year  in  which  to  prepare  for  the 
payment  of  the  second  instalment;  and  so  on  until  you  have 
paid  the  whole. 

Capitalist — Are  these  Coupon  Bonds  ? 

Agent— Yes.  Here  is  a  specimen  Bond.  And  while  you  are 
examining  it  I  will  fill  out  this  Subscription  Blank  for  your  sig- 
nature. 

[Agent  fills  out  Subscription  Blank;  secures  capitalist's  sig- 
nature; collects  first  instalment;  introduces  capitalist  to  the 
doctor  who  examines  him,  and  then  forwards  the  papers  to  the 
Society.] 

SCENE  II. 


CAPITALIST'S  OFFICE,  A  WEEK  LATER. 


Enter  agent  with  "  Contract  of  Sale,"  which  he  hands  to 
capitalist. 

Capitalist— What  is  this?    Where  are  my  $100,000  of  Bonds? 

Agent— They  are  in  the  vaults  of  the  Equitable  Society. 

Capitalist — But  why  don't  you  deliver  them  to  me? 

Agent — Because  you  have  only  paid  one-twentieth  part  of  the 
purchase  price.  The  transaction  will  not  be  consummated  until 
after  you  have  paid  the  remainder  of  the  purchase  money; 
meanwhile  this  "  Contract  of  Sale  "  protects  you  absolutely. 

Capitalist — Now  I  begin  to  understand.  But  how  does  this 
"  Contract  of  Sale"  protect  me? 

Agent — Read  the  first  page  of  the  Contract,  and  you  will  see. 
The  Contract  fully  describes  the  transaction,  and  binds  the 
Equitable  to  carry  it  out ;  and  you  will  observe  that  attached  to 
the  Contract  is  a  sample  Bond.  Hence,  if  you  put  this  Contract 
of  Sale,  with  the  sample  Bond  attached  to  it,  in  your  safe,  you 
or  your  lawyer,  or  your  executor,  will  have  at  hand  a  full  record 
of  the  transaction,  which  may  be  consulted  at  any  time. 

Capitalist — Suppose  I  should  get  tired  of  these  instalments ; 
am  I  bound  by  this  agreement  to  continue  to  pay  them? 


136  HOW  TO   SELL  ASSURANCE. 

Agent— Not  at  all.  You  are  absolutely  free  to  end  the  trans- 
action at  any  time.  The  Equitable  is  bound  by  the  agreement, 
but  you  are  free  to  do  as  you  please;  and  that  is  one  reason 
why  the  Bonds  themselves  cannot  be  delivered  to  you  in  ad- 
vance. 

Capitalist — But  if  I  pay  three  or  four  instalments  and  then 
quit,  I  shall  lose  all  that  I  have  paid? 

Agent — By  no  means.  The  Contract  of  Sale  has  a  guaranteed 
surrender  value,  which  increases  from  year  to  year,  and  which 
will  be  paid  by  the  Equitable  if  you  decide  to  surrender  the 
contract. 

Capitalist — But  suppose,  after  paying  a  number  of  these  in- 
stalments, I  should  be  hard  up  and  find  it  impossible  to  con- 
tinue my  payments?  Would  it  be  necessary  in  self-protection 
for  me  to  take  the  cash  surrender  value  of  the  contract,  and 
thus  lose  my  Bonds  ? 

Agent — That  danger  has  also  been  provided  against,  for  you 
can  borrow  money  from  the  Equitable,  using  the  Contract  of 
Sale  as  collateral  security  for  the  loan.  This  is  one  of  the  great 
advantages  of  this  investment.  Provision  is  made  by  which  in 
case  of  necessity  the  money  already  invested  with  the  Equitable 
will  enable  you  to  protect  and  continue  the  transaction  to  com- 
pletion. 

Capitalist — When  the  time  comes  for  the  Bonds  to  be  deliv- 
ered to  me,  can  I  dispose  of  them  for  cash  if  I  should  need  the 
money  ? 

Agent — At  that  time  the  market  price  of  the  Equitable  So- 
ciety's New  Gold  Bonds  will  be  at  a  premium  of  30% ;  that  is 
to  say,  the  Society  will,  if  you  so  desire,  pay  you  $130,000  in- 
stead of  issuing  the  $100,000  of  Bonds.  But  if  you  keep  them 
you  can  collect  interest  in  gold  on  them  semi-annually  at  the 
rate  of  5  per  cent,  per  annum  for  twenty  years,  after  which  the 
Bonds  will  mature  and  be  paid  in  gold,  and  the  money  may  then 
be  reinvested. 

Capitalist — Well,  all  this  is  interesting,  and  I  am  perfectly 
satisfied.  But  I  want  you  to  know  that  I  am  making  this  in- 
vestment chiefly  because  I  have  confidence  in  you,  and  because 
you  tell  me  that  it  is  the  best  thing  I  can  do  with  my  money. 

Agent — It  is  true  that  in  my  judgment  this  is  the  best  invest- 
ment you  can  make,  and  I  appreciate  your  confidence;  but  my 
relation  to  this  transaction  is  simply  that  of  a  banker  or  broker. 
I  act  as  your  agent  to  negotiate  the  transaction.  Hence,  it  is 
important  for  you  to  see  clearly  for  yourself  why  I  recommend 


HOW  TO   SELL  ASSURANCE.  137 

the  investment.  If  you  know  of  your  own  knowledge  that  it  is 
better  than  any  investment  you  could  make  in  Government 
bonds,  or  railroad  bonds,  or  other  securities,  then  you  will  be  all 
the  more  appreciative  of  my  services,  and  will  be  sure  that  you 
have  acted  shrewdly. 

Capitalist— I  am  satisfied  that  I  am  taking  a  wise  step,  and  I 
understand  in  a  general  way  the  value  of  the  investment,  but, 
all  the  same,  I  should  like  to  hear  what  more  you  have  to  say  in 
its  favor. 

Agent — I  should  tire  you  out  if  I  took  time  to  give  you  all  my 
reasons.  Read  the  Contract  of  Sale,  and  every  paragraph  will 
add  to  your  appreciation  of  the  value  of  this  purchase.  All  I 
can  do  now  is  to  call  your  attention  to  a  few  salient  points. 
Here  they  are : 

1.  The  Equitable  Society  is  the  strongest  of  financial  organi- 
zations.    It  is  acknowledged  everywhere  as  "  the  strongest  in 
the  world."    Its  Bonds,  therefore,  are  practically  as  safe  as  Gov- 
ernment bonds,  and  they  have  a  value  which  Government  bonds 
do  not  possess.     This  I  will  explain  later  on. 

2.  As  already  explained,  you  are  free  to  terminate  the  con- 
tract, and  to  surrender  it  for  its  guaranteed  value  at  any  time 
after  three  instalments  have  been  paid. 

3.  The  Equitable  guarantees  to  lend  you  money  on  the  Con- 
tract under  most  liberal  conditions. 

4.  The  Bonds  and  the  income  on  the  Bonds  are  payable  in 
gold. 

5.  The  rate  of  income  on  the  Bonds  (5%)  is  high,  and  guar- 
anteed for  a  long  period  (20  years). 

6.  The  Equitable  Society  has  been  in  business  for  over  forty- 
two  years;    its  management  has  been  more  successful  than  that 
of  any  other  company;    and  its  business  is  conducted  on  the 
mutual  plan,  which  means  that  you  as  a  purchaser  of  a  block  of 
Gold  Bonds  will  be  entitled  to  a  reduction  in  the  purchase  price 
of  the  Bonds  at  the  end  of  twenty  years.     In  other  words,  you 
will  then  receive  from  the  company  a  cash  dividend  represent- 
ing your  full  share  of  the  company's   surplus  profits,  as  ex- 
plained in  the  Contract  of  Sale. 

Capitalist — But  if  I  should  die,  would  it  be  necessary  for  my 
estate  to  continue  the  payment  of  these  instalments  until  the  end 
of  the  twenty  years? 

Agent — Now  you  touch  upon  an  advantage  which  is  in  some 
respects  more  important  than  any  of  the  advantages  already 


138  HOW  TO   SELL  ASSURANCE. 

named.  Although  this  advantage  is  incidental  it  is  the  one 
characteristic  of  this  transaction  which  makes  it  so  different 
from  an  ordinary  investment,  and  which  justifies  the  assertion 
that  it  is  safer  and  better  than  any  investment  in  railroad,  or 
even  in  United  States,  securities. 

Capitalist— Really !  You  are  becoming  interesting.  What  is 
this  special  advantage? 

Agent— I  have  purposely  kept  it  to  the  last,  in  order  that  I 
may  so  impress  it  upon  your  memory  that  you  may  never  lose 
sight  of  it;  and  if  you  never  lose  sight  of  it,  you  will  never 
cease  to  rejoice  that  I  have  put  you  in  the  way  of  making  this 
investment;  and  if  this  is  your  attitude  permanently — as  it 
ought  to  be — and  if  you  ever  wish  to  realize  on  any  of  your 
investments,  you  will  hold  fast  to  these  Bonds  and  sell  some- 
thing else. 

Capitalist— Well,  drive  ahead.  I  am  not  growing  tired,  but 
time  flies. 

Agent— Only  a  word  more  and  I  am  through.  Now,  the 
Equitable  Society,  which  has  sold  you  $100,000  of  its  New 
Twenty- Year  5%  Gold  Bonds,  is,  as  I  have  said,  a  great  financial 
organization — "  the  strongest  in  the  world."  But  it  so  happens 
also  that  it  is  engaged  in  the  business  of  life  assurance.  It  has 
at  the  present  time  policies  outstanding  whose  aggregate  amount 
exceeds  one  thousand  million  dollars  of  assurance  (and  it  has, 
by  the  way,  a  Surplus  of  seventy-one  million  dollars — "  the  larg- 
est in  the  world  ").  Now,  as  the  Equitable  is  an  assurance  com- 
pany, it  is  able  to  insure,  and  does  insure,  the  transaction  it  has 
made  with  you. 

Capitalist — What  do  you  mean  by  that? 

Agent — I  mean  simply  this:  That  if  you  should  die  to-mor- 
row, the  Contract  of  Sale  which  you  hold  in  your  hand  would 
instantly  mature,  and  the  executors  of  your  estate  would  at 
once  receive  $100,000  of  Gold  Bonds  fully  paid. 

Capitalist — Do  you  mean  to  say  that  the  Bonds  would  be  de- 
livered at  once? 

Agent — I  do. 

Capitalist — And  do  you  say  that  the  remaining  nineteen  in- 
stalments would  be  canceled? 

Agent — I  do. 

Capitalist — How  is  that  possible? 

Agent — It  is  possible,  because  the  transaction,  as  I  have  said, 
is  insured.  The  Equitable  agrees,  in  this  Contract  of  Sale,  that 
if  the  purchaser  should  die  at  any  time  before  the  maturity  of 


HOW  TO   SELL  ASSURANCE.  139 

the  contract,  any  instalments  that  have  not  fallen  due  prior  to 
his  death  will  be  canceled  and  the  Bonds  be  immediately  deliver- 
able. In  guarding  this  investment  by  adding  to  the  contract  the 
protection  of  life  assurance,  the  purchaser  obtains  an  investment 
doubly  secured:  financially  secured  by  the  guarantee  of  the 
"strongest  company  in  the  world";  secured  against  the  loss 
and  embarrassment  resulting  from  the  premature  death  of  the 
purchaser  by  the  protecting  influence  of  life  assurance.* 

Capitalist — So  you  think  I  have  made  no  mistake? 

Agent — No!  You  have  bought  the  best  Bonds  in  the  world, 
and  the  value  of  your  Bonds  is  insured  by  the  "  strongest  com- 
pany in  the  world." 

Capitalist— Well,  I  am  satisfied! 


*In  this  case  the  assurance  part  of  the  contract  is  on  the  basis 
of  a  Twenty  Year  Endowment.  In  all  cases  where  the  pur- 
chaser is  a  man  of  means  and  not  advanced  in  life,  it  is  best  to 
offer  these  Bonds  on  that  basis:  ist — Because  the  Endowment 
Contract  is  clearer  and  simpler  than  on  any  other  form.  2d — 
Because  the  instalments  are  limited  to  a  period  of  twenty  years ; 
and  3d — Because  at  the  end  of  twenty  years  the  Bonds  are  de- 
livered to  the  purchaser  himself.  (Only  in  the  case  of  an  old 
man  is  a  Fifteen  Year  Endowment  preferable.) 

After  explaining  the  Endowment  form,  it  is  easy  to  turn  to 
the  Twenty  Payment  Life  (or  in  the  case  of  old  men,  to  the 
Fifteen  Payment  Life),  which  has  the  great  advantage  of  be- 
coming fully  paid  up  after  twenty  years. 

But  there  are  many  who  cannot  afford  the  Endowment  or 
Limited  Payment  rate.  To  such,  a  contract  on  the  Ordinary 
Life  form  can  be  advocated  to  great  advantage.  The  Gold 
Bond  under  such  a  contract  is  precisely  the  same.  It  runs  for 
the  same  period  and  bears  the  same  interest,  and  if  the  invest- 
ment be  made  for  the  benefit  of  wife  or  children,  or  for  any 
other  person  dependent  for  support  on  the  purchaser,  it  is  an 
ideal  contract,  for  the  annual  cost  is,  comparatively  speaking, 
moderate,  and  the  moment  the  purchaser  dies  and  the  wife  or 
other  dependent  loses  his  support,  the  Bonds  will  be  issued  and 
the  income  on  them  will  begin,  and  the  beneficiary  will— just  at 
the  right  time — enjoy  the  relief  contemplated  by  the  purchaser 
at  the  time  his  investment  was  made. 


140  HOW  TO   SELL  ASSURANCE. 

NOTE. 

It  is  gratifying  to  call  attention  to  the  fact  that  the  Capitalist 
referred  to  above  did  not  die  the  day  after  the  transaction  was 
consummated.  He  continues  in  the  best  of  health,  and  has 
every  expectation  of  living  to  the  end  of  the  twenty  years,  and 
of  receiving  himself  his  $100,000  of  5%  Bonds.  If,  therefore,  it 
be  objected  that,  in  the  case  cited,  the  $100,000  of  Bonds  has  not 
cost  "  less  than  $7,000  "  (i.e.,  at  the  rate  of  $70  per  thousand),  it 
may  be  answered:  ist — That  they  have  cost  less  than  that 
per  annum.  2d — That  they  would  have  cost  less  than  $7,000  if 
death  had  intervened  (and  life  is  always  uncertain)  ;  and  3d — 
That  while  death  has  not  intervened  in  this  instance,  it  has  in 
other  similar  cases.  It  is  a  fact  that  the  Equitable  has  sold 
many  thousands  of  blocks  of  Gold  Bonds,  and  already  there 
have  been  several  instances  where  death  has  occurred  after  only 
a  few  instalments  had  been  paid,  and  where  the  Bonds,  being 
insured,  have  been  issued  instanter.  For  example : 

(a)  On  June  3d,  1899,  Mr.  Thomas  A.  Bell,  of  Winnipeg, 
Manitoba,  purchased  $10,000  Gold  Bonds,  the  preliminary  con- 
tract being  numbered  919,931.  On  November  nth,  or  less  than 
six  months  afterwards,  Mr.  Bell  died  suddenly,  and  the  $10,000 
of  Bonds  were  issued  to  his  estate,  and  although  only  one  instal- 
ment had  been  paid,  the  other  nineteen  were  at  once  canceled. 

(b)  On  September  9th,  1898,  Mr.  Albert  Van  Wagenan,  of 
Boston,  Mass.,  took  out  a  preliminary  contract   (Number  879,- 
505)  entitling  him  to  $15,000  of  Gold  Bonds.     Mr.  Van  Wage- 
nan  lived  to  pay  the  second  instalment,  but  on  December  2ist, 
1899,  he  was  killed  in  an  elevator  accident  in  Boston.     Thus  for 
the  payment  of  two  instalments  his  family  received  $15,000  of 
Gold  Bonds. 

(c)  In  1898,  Mr.  G.  W.  Timerman,  of  Evanston,  111.,  bought 
$10,000  of  Gold  Bonds  under  contract  No.  876,917.     In  1899,  be- 
fore the  second  instalment  became  due,  he  died,  and  Gold  Bonds 
for  $10,000  (par  value)  were  issued  to  his  family. 


HOW  TO   SELL  ASSURANCE.  141 


CHAPTER  XVI. 

THOSE  WHO  BUY  ANNUITIES  OR  BECOME 
PARTIES    TO   LONG  ASSURANCE   CON- 
TRACTS SHOULD  BE  CONTENT  ONLY 
WITH  THE  STRONGEST  COMPANY. 

It  is  easier  to  assure  a  man  of  wealth  for  $100,000  than 
to  assure  ten  men  of  moderate  means  for  $10,000  each ; 
and  yet  the  return  to  the  agent  is  the  same  in  either  case. 
Again,  men  of  moderate  means  usually  pay  their  pre- 
miums out  of  their  earnings,  while  men  of  wealth  are, 
in  these  times,  at  their  wits'  ends  to  find  secure  invest- 
ments for  their  capital 

It  is  no  new  thing  for  multitudes  of  such  men,  to 
whom  life  assurance  is  not  a  necessity,  to  invest  some 
of  their  capital  in  policies  or  assurance  bonds.  If,  then, 
such  men  have  seen  the  wisdom  of  this  during  pe- 
riods within  which  they  have  been  able  to  invest  their 
money  at  liberal  rates  of  interest,  how  much  more  forci- 
ble will  an  investment  with  the  Equitable  appeal  now  to 
an  enormously  larger  number  of  our  wealthy  citizens 
than  has  been  the  case  heretofore ! 

Observe  the  increasing  favor  with  which  Annuities 
are  regarded  by  men  of  means  in  this  country.  See  to  it 
that  the  Equitable  obtains  its  full  share  of  this  business. 
As  a  matter  of  fact,  if  the  agents  of  the  Equitable  will 


142  HOW   TO   SELL  ASSURANCE, 

lay  its  Annuities  in  a  proper  light  before  financiers,  they 
will  enjoy  a  supreme  advantage  over  the  agents  of  other 
companies,  because  of  our  superior  strength  and  more 
conservative  management. 

We  advise  you  to  place  Annuities  in  your  field  through 
the  officers  of  the  banks  with  which  you  have  affiliations, 
remunerating  them  for  services  rendered.  Bankers  and 
financiers  cannot  fail  to  appreciate  the  advantage  of  of- 
fering Annuities  issued  by  the  strongest  financial  insti- 
tution engaged  in  the  business  of  selling  Annuities — 
for  people  who  place  their  capital  in  this  way  recognize 
the  importance  of  the  absolute,  permanent  security  of  the 
institution  on  which  they  must  depend  for  the  income 
from  the  Annuity  as  long  as  the  person  lives  on  whose 
life  it  is  based. 

Some  of  our  competitors,  as  you  very  well  know,  not- 
withstanding the  fact  that  their  financial  strength  is  far 
inferior  to  that  of  the  Equitable,  are  now,  in  the  heat  of 
competition  for  new  business,  departing  from  scientific 
methods  and  transacting  business  on  bases  which  tend 
to  sap  their  financial  strength.  Bankers  and  capitalists 
will  appreciate,  and  be  interested  in,  the  position  taken 
by  the  Equitable  as  contrasted  with  that  of  some  of  its 
competitors  if  you  will  take  the  pains  to  state  the  case 
forcibly  and  concisely  in  a  manner  which  will  be  under- 
stood by  men  whose  minds  are  trained  by  their  experi- 
ence in  guarding  and  investing  capital.  Why  should 
a  man  buy  an  Annuity  from  a  company  that  seeks  to 
increase  its  assurance  business  by  accepting  extra  haz- 


HOW  TO   SELL  ASSURANCE.  143 

ardous  risks  without  extra  charge;  or  from  a  company 
whose  guarantees  to  those  who  surrender  their  assur- 
ance prematurely  are  in  excess  of  the  reserves  resulting 
from  the  premiums  charged,  when  the  Equitable  offers 
Annuities  at  the  same  price  on  identically  the  same 
terms  as  these  less  carefully  conducted  companies  ? 

If  the  Equitable's  financial  strength  is  far  superior 
to  that  of  its  competitors  at  the  present  time,  after  all 
the  prominent  companies  have  been  transacting  business 
for  many  years  on  substantially  the  same  basis,  what 
will  be  the  relative  financial  standing  of  these  companies 
twenty  or  thirty  years  hence?  Who  can  say  what  con- 
trasts will  then  be  shown  ?  The  Equitable  is  determined 
to  adhere  to  sound  scientific  methods,  and  it  is  difficult 
to  see  how  other  companies  that  have  entered  upon  reck- 
less courses  can  readily  retract  and  return  to  conserva- 
tive bases  without  stultifyingtheir  management  and  prob- 
ably checking  their  progress.  Which,  then,  is  to  be  pre- 
ferred for  the  future  by  capitalists  and  financiers  ? 

What  is  true  of  Annuities  is  true  also  of  the  Equi- 
table's Bonds  and  Policies.  Our  contracts  are  as  liberal 
and  contain  as  many  and  as  favorable  guarantees  as  the 
science  of  the  business  justifies.  We  do  not  seek  to  draw 
into  the  Society's  ranks  those  who  have  no  intention  of 
maintaining  their  contracts.  We  prefer  to  transact  our 
business  chiefly  among  substantial  men  who  come  to 
stay;  who  care  less  for  temporary  benefits  than  for  ul- 
timate advantage,  and  who  are  engaged  in  regular  pur- 
suits, live  healthy  lives,  and  reside  amid  wholesome  ?ur- 


144  HOW  TO   SELL  ASSURANCE. 

rotmdings.  Such  a  course  means  more  profit  to  contin- 
uing policy-holders.  To  such  men  we  say :  "  The  form 
of  Policy,  or  Bond,  or  Annuity  which  you  purchase  is 
important;  the  guarantees  contained  in  the  contract  are 
important;  but  the  company  itself,  and  its  financial 
standing  and  measures  for  earning  profits,  are  the  most 
important.  And  the  best  policy  to  take  is  one  issued  by 
the  company  which  has,  (i)  the  greatest  financial 
strength;  (2)  is  so  transacting  its  business  as  to  earn 
most  surplus  for  its  policy-holders;  (3)  guarantees  at 
the  end  of  a  stipulated  period  the  entire  reserve  justi- 
fied by  the  premiums  charged,  and  (4)  guarantees  in 
addition  that  to  this  reserve  shall  be  added  the  policy's 
full  share  of  the  surplus  profits  realized  under  an  active 
and  successful,  but  at  the  same  time  a  prudent  and  con- 
servative management." 

A  man  of  wealth  can  readily  be  interested  in  assur- 
ance for  the  protection  of  his  investments.  Such  a  man 
realizes  that  although  his  money  may  be  well  invested  in 
houses,  stores,  land,  mines,  ships,  etc.,  yet  at  his  death 
there  may  be  very  little  ready  money  to  his  credit  or 
within  reach  of  his  executors.  He  realizes  that  money 
might  be  needed  then  and  might  have  to  be  raised  by 
borrowing  or  by  selling,  either  of  which  might  be  costly 
and  troublesome.  Life  Assurance  obviates  the  necessity 
of  any  such  sacrifice.  It  protects  the  investment. 

Property  may  be  well  bought,  investments  may  be 
carefully  made,  but  their  immediate  value  is  represented 
by  just  what  they  will  bring  under  the  auctioneer's  ham- 


HOW  TO   SELL  ASSURANCE.  145 

mer.  Conservative  financial  institutions  refuse  to  loan 
on  property  more  than  one-third,  or,  at  the  most,  one- 
half  of  its  estimated  value,  because  it  might  not  bring 
more  if  it  had  to  be  turned  into  cash  at  once — and  prop- 
erty often  has  to  be  turned  into  cash  at  the  death  of  the 
owner. 

Every  man  who  gives  a  mortgage  should  carry  a  pol- 
icy of  equal  amount,  for  at  his  death  the  policy  will  pay 
the  mortgage. 

In  fact,  any  business  man  who  gives  the  matter  care- 
ful consideration  will  acknowledge  that,  as  a  matter  of 
business,  he  should  no  more  invest  extensively  In  any 
enterprise  without  protecting  his  investment  by  Life 
Assurance  than  he  should  buy  a  house  without  protect- 
ing his  investment  by  Fire  Insurance. 

You  have  an  opportunity  to-day  which  you  have  not 
had  before.  You  have  grounds  upon  which  you  can  go 
to  the  wealthiest  men  in  the  community  and  secure  their 
undivided  attention,  gain  their  absolute  confidence,  and 
brush  aside  the  competition  of  the  agents  who  represent 
companies  whose  officers  give  secondary  importance  to 
the  considerations  which  financial  men  all  the  world  over 
regard  as  the  first 


146  HOW  TO  SELL  ASSURANCE. 

CHAPTER  XVII. 

LIVE  AND  LEARN. 

Even  if  you  are  the  oldest  agent  on  the  face  of  the 
earth,  you  have  still  something  to  learn.  Keep  your  eyes 
and  ears  open  and  you  will  see  or  hear  something  to 
your  advantage  every  day  of  your  life. 

The  other  day  I  read  with  profit  and  relish  a  book 
issued  by  a  rival  company,  and  I  have  culled  from  it  the 
following  paragraphs  for  your  instruction : 

The  agent  is  cautioned  against  scattering  his  energies.  Better 
a  little  field  well  tilled  than  a  big  one  half  worked. 

Never  traduce  a  rival  company ;  all  are  striving  for  a  common 
object,  and  confidence  disturbed  in  one  is  disturbed  in  all. 


Push  your  work  quietly;  the  still  hunt  is  the  one  that  tells. 
Stick  to  your  field ;  one  place  is  as  good  as  another ;  don't  skim 
over  it,  dig  deeply. 

Be  judicious  in  canvassing;  all  people  are  not  to  be  ap- 
proached alike.  Don't  talk  too  much;  let  the  person  you  are 
canvassing  have  his  say  and  get  his  information  in  his  own  way. 


Never  get  excited.    Keep  cool.    Be  patient    Use  tact. 


The  perfect  agent  is  he  who  secures  the  largest  amount  of 
first-class  new  business — the  least  ratio  of  lapses,  and  the  lowest 
average  death  rate. 

A  common  fault  of  the  unsuccessful  agent  is  the  failure  to 
collect  the  first  premium  when  securing  the  application. 


HOW  TO   SELL  ASSURANCE.  147 

Be  ready  to  meet  all  objections.  The  time  will  never  come 
when  policy  holders  will  not  be  more  or  less  disturbed  by  rival 
companies,  co-operative  deceptions,  the  advice  of  ignorant 
friends,  the  malice  of  enemies,  the  blackmailing  attacks  of  cer- 
tain papers.  Pick  up  every  useful  fact  about  the  business  you 
can.  Seek  light  on  all  doubtful  points.  Thus  equip  yourself  so 
as  to  defend  your  business  and  hold  your  own  against  all  odds. 

A  careless  and  shabby  attire  and  a  rough  demeanor  are  not 
passports  to  success.  Many  withhold  confidence  and  patronage 
from  men  who,  having  little  apparent  respect  for  themselves, 
cannot  inspire  it  in  others.  The  majority  of  agents  are  careful 
in  this  matter,  and  deserve  commendation  for  the  proper  pride 
shown  in  the  neatness  of  their  personal  appearance.  Others  are 
indifferent  in  this  respect,  much  to  their  own  and  the  company's 
detriment. 

A  company  or  a  business  is  largely  judged  by  the  men  who 
advocate  it,  and  no  amount  of  persuasive  power  or  knowledge 
or  experience  will  counteract  the  prejudice  formed  by  a  shabby 
solicitor. 

It  is  hardly  necessary  to  say  anything  to  Equitable 
agents  about  their  personal  appearance,  but  it  is  worth 
while  to  impress  upon  them  the  truth  of  the  statement 
that  in  ninety-nine  cases  out  of  a  hundred  the  applicant 
will  judge  the  company  by  the  agent.  While  it  is  im- 
portant, therefore,  that  the  agent  should  be  well  dressed, 
prosperous  in  appearance,  with  his  pocket-book,  and 
every  document  it  contains,  neat  and  clean  and  trim, 
there  is  one  thing  that  is  even  more  important.  Pudd'n- 
head  Wilson  says:  "Be  careless  in  your  dress  if  you 
must,  but  keep  a  tidy  soul"  The  walk  and  conversation 
of  the  agent  must  be  such  as  to  inspire  confidence.  Then 
he  will  satisfy  every  applicant  that  his  company  can  be 
depended  upon,  because  he  can  be  depended  upon. 


148  HOW  TO   SELL  ASSURANCE. 


CHAPTER  XVIII. 

GO  TO  THE  DENTIST,  THOU  AGENT;   CON- 
SIDER HIS  WAYS  AND  BE  WISE. 

A  certain  dentist  was  so  considerate  of  the  feelings  of 
his  patients  that  he  drew  their  teeth  on  the  instalment 
plan.  After  a  preliminary  pull,  "  to  loosen  things  up," 
he  would  send  a  patient  away  and  tell  him  to  come 
in  a  week  and  have  it  out.  Somehow  that  dentist  didn't 
thrive. 

Now,  the  business  of  the  life  agent  is  to  extract  pre- 
miums from  applicants,  and  the  quicker  he  is  the  less 
pain  he  occasions.  And  what  joy  to  the  applicant  when 
the  thing  is  done!  And  if  the  agent  has  nerve  and 
knows  his  trade,  and  administers  a  little  laughing  gas  as 
a  preliminary,  he  can  extract  the  premium  without  in- 
flicting any  pain. 

"  What!  "  says  the  applicant,  "  is  it  out?  I  never  felt 
it!  I  thank  you  from  the  bottom  of  my  heart  for  this 
relief.  You  have  added  to  my  riches,  and  the  aching 
anxieties  which  I  have  had  for  years  about  old  age  and 
the  future  of  my  family  are  all  things  of  the  past." 

Why  should  the  agent  lose  his  time,  and  add  to  his 
labor,  and  increase  the  difficulties  of  his  task,  by  giving 
a  series  of  inadequate  pulls,  when  his  client,  after  signing 


HOW  TO   SELL  ASSURANCE.  149 

the  application,  has  a  pen  in  his  hand  with  which  to 
sign  his  check? 

All  this  is  so  obvious  that  the  question  may  be  asked, 
"  Why,  does  it  ever  happen  that  an  agent  fails  to  collect 
the  first  premium  in  advance  ?  "  Of  course,  the  shallow 
agent  will  have  many  reasons  at  the  tip  of  his  tongue. 
He  must  not  press  his  customer  too  hard.  He  must  not 
appear  to  be  grasping.  He  must  not  exhibit  a  mercenary 
spirit.  He  must  wait  for  a  more  fitting  season,  etc.,  etc. 
Every  agent  must,  of  course,  exercise  common  sense; 
there  may  be  occasions,  now  and  then,  when  it  would 
be  preferable  to  postpone  the  collection  of  the  premium 
until  a  later  date.  But  such  cases  are  not  the  rule;  they 
are  the  exception,  and  they  are  the  exception  because  it 
is  better  for  the  applicant  if  you  collect  the  premium 
when  you  secure  the  application. 

Have  you  ever  thought  of  looking  at  the  question 
from  the  applicant's  side  ?  Has  it  ever  occurred  to  you 
that  while  it  is  important  for  you  that  the  premium  should 
be  collected  in  advance,  it  is  infinitely  more  important 
for  the  applicant?  Once  upon  a  time  our  Assistant  Reg- 
istrar, after  attending  to  the  business  of  the  morning, 
discovered  that  he  had  a  slight  pain  in  his  side,  and  went 
home  to  rest  until  the  following  day.  The  next  after- 
noon he  was  in  the  hospital,  and  had  undergone  an  op- 
eration for  appendicitis.  To-day  he  is  perfectly  well,  but 
the  surgeon  reported  that  his  recovery  was  almost  a  mir- 
acle, and  that  if  he  had  neglected  his  case  a  few  hours 
longer,  that  would  have  been  the  end  of  him.  Now,  if 


150  HOW  TO   SELL  ASSURANCE. 

he  had  applied  for  a  policy  the  day  before  he  felt  the 
pain  in  his  side,  and  if  he  had  failed  to  pay  the  premium, 
and  if  his  surgeon  had  been  a  less  skillful  man,  the  as- 
surance applied  for  would  have  been  irrevocably  lost. 
As  it  is,  he  must  wait  some  time  before  he  can  secure 
new  assurance.  But  let  me  instance  another  case,  about 
which  I  have  been  reading  in  the  newspapers.  A  resi- 
dent of  Boston,  so  the  newspaper  alleges,  applied  to  a 
certain  company  for  $240,000  of  assurance.  The  risk 
was  accepted,  the  policy  was  issued,  but  the  premium 
remained  unpaid.  A  few  weeks  slipped  by.  Then  a 
lawyer  appeared  at  the  office  of  the  company,  paid  the 
premium,  took  up  the  policy,  and  withdrew.  Two  days 
later  it  was  rumored  that  on  the  day  the  premium  was 
paid,  or  the  day  after,  the  applicant  had  been  operated 
on  for  appendicitis  and  had  died  under  the  knife.  I 
know  nothing  of  the  merits  of  this  case,  or  if  the  facts  are 
as  here  quoted,  and  it  is  on  account  of  this  very  igno- 
rance that  I  select  it  to  illustrate  my  point.  Now,  if  the 
agent  had  collected  the  premium  when  he  secured  the 
application,  and  if  the  fact  had  subsequently  been  de- 
monstrated that,  as  in  the  case  of  our  Assistant  Registrar, 
this  gentleman's  attack  of  appendicitis  had  come  as  a 
surprise  to  him  and  to  his  physician  while  he  was  seem- 
ingly in  rugged  health,  after  he  had  applied  for  his  as- 
surance, and  after  he  had  paid  for  and  received  his  pol- 
icy, then  the  estate  of  this  gentleman  would  certainly  be 
more  than  $200,000  better  off  than  it  was  before  this 
assurance  was  applied  for.  Nor  is  this  all.  If  these 


HOW  TO  SELL  ASSURANCE.  151 

were  the  established  facts,  there  could  be  no  possible 
question  as  to  the  motive  or  good  faith  of  the  assured  or 
his  representatives.  But  what  is  the  situation  to-day,  as 
indicated  by  the  newspaper  account  of  this  transaction? 
Instantly  a  suspicion  is  aroused  as  to  the  good  faith  of 
the  applicant,  who  is  dead  and  unable  to  testify  in  his 
own  behalf.  It  is  the  manifest  duty  of  the  company  not 
to  connive  at  a  fraud.  Hence  it  cannot  admit  the  claim 
if  fraud  is  suspected ;  and  even  if  it  should  be  proved  that 
the  company  is  liable,  and  that  the  delay  in  the  pay- 
ment of  the  premium  was  due  altogether  to  innocent 
causes,  think  of  the  delays,  and  anxieties,  and  annoy- 
ances, and  expenses  which,  although  unavoidable  now, 
might  all  have  been  avoided  in  the  beginning. 

Every  agent  will  think  of  thousands  of  other  illus- 
trations of  the  danger  of  delay,  and  every  agent  should 
remember  that  even  if  he  is  not  prompted  to  collect  the 
premium  in  advance  on  his  own  account,  he  owes  it  to 
his  client  to  collect  the  premium  when  the  application 
is  signed  on  his  client's  account. 


15 2  HOW  TO   SELL  ASSURANCE. 

CHAPTER  XIX. 

THE  RIGHT  POINT  OF  VIEW. 

The  permanent  success  of  the  life  agent  depends  very 
much  upon  his  point  of  view. 

There  are  two  ways  of  getting  something  to  eat  off  a 
piece  of  land.  One  is  to  hunt  about  casually  and  pick 
the  wild  berries  and  nuts  that  chance  to  grow  there.  The 
other  is  to  cultivate  the  ground  and  raise  a  crop. 

These  papers  are  not  intended  for  the  casual  agent 
who  goes  into  the  business  as  a  temporary  makeshift. 
Nor  is  the  Equitable  conducted  for  the  benefit  of  such 
agents.  The  officers  of  the  Equitable  take  pride  in  the 
fact  that  the  agents  of  the  Society  are  a  body  of  repre- 
sentative men  who  are  proud  of  their  calling  and  their 
company,  who  are  not  in  the  business  for  a  day,  but 
who  plow,  and  plant,  and  spend  their  own  money  for  the 
best  reaping  and  threshing  machines,  and  build  barns 
in  which  to  store  their  harvests.  Moreover,  they  spend 
their  money  to  enrich  the  land,  so  that  instead  of  being 
soon  exhausted,  it  shall  continue  to  produce  crops  ever 
increasing  in  volume  and  value. 

The  point  of  view  of  the  Equitable  agent  (to  change 
the  figure)  should  be  that  of  the  Commander-in-Chief  of 
an  army.  What  would  be  thought  of  a  General  who 
made  no  effort  to  prevent  desertion  ?  Why  is  it  that  the 


HOW  TO   SELL  ASSURANCE.  153 

punishment  for  desertion  is  sharp  and  swift?  First,  be- 
cause when  desertions  occur  there  is  danger  that  those 
who  remain  will  become  disaffected  and  undisciplined. 
Second,  because  by  desertion  the  forces  are  weakened 
numerically.  Third,  because  deserters  usually  go  over 
to  the  enemy,  thus  increasing  the  enemy's  strength. 

Now,  the  agent's  forces  are  his  policy-holders.  Every 
policy-holder  who  deserts  does  an  incalculable  injury  to 
the  agent ;  and  the  loss  of  the  renewal  commission  may 
be  but  a  small  part  of  that  injury.  The  man  who  allows 
his  policy  to  lapse  is  a  deserter.  Even  if  he  never  says  a 
word  against  life  assurance,  he  nevertheless  becomes  a 
stumbling  block  in  the  path  of  others,  because  actions 
speak  louder  than  words.  But  those  who  allow  their 
policies  to  lapse  are  seldom  merely  inert  obstructions. 
They  are  usually  dissatisfied,  and  even  if  they  do  not  go 
over  to  the  enemy,  they  are  likely  to  exert  an  active  in- 
fluence against  the  agent. 

Keep  your  policy-holders  in  line.  Spend  money  and 
time  and  labor  if  necessary,  to  prevent  them  from  strag- 
gling. Then  you  will  have  an  efficient,  well-disciplined 
army  of  policy-holders  that  will  fight  your  battles  for 
you  and  conquer  your  foes. 

The  same  arguments  hold  good  in  reference  to  all  set- 
tlements with  policy-holders,  such  as  the  adjustment  of 
Deferred  Dividend  policies,  the  cashing  of  endowments 
and  the  payment  of  death  claims.  If  the  point  of  view 
of  the  agent  is,  "  These  are  transactions  in  which  I  have 
no  pecuniary  interest.  I  ought  not  to  be  asked  to  waste 


154  HOW  TO   SELL  ASSURANCE. 

my  time  over  them.  I  shall  dispatch  them  as  quickly  as  I 
can,"  he  will  lose  many  golden  opportunities.  His  crop 
will  be  inadequate  because  of  his  failure  to  expend  time 
and  labor  in  preparing  the  ground. 

If  the  agent  depends  in  any  degree  upon  others,  he 
should  see  to  it  that  each  one  under  him  has  the  right 
point  of  view.  It  is  easier  to  rouse  the  anger  of  a  policy- 
holder  who  comes  into  the  agent's  office  than  to  put  him 
into  a  good  humor.  When  everything  goes  well  policy- 
holders  stay  away.  When  they  have  something  to  com- 
plain of,  or  need  information,  they  call ;  and  they  must 
be  dealt  with  patiently,  and  with  tact  and  intelligence. 
And  if  your  assistant,  or  clerk,  or  the  office  boy,  fails  to 
take  the  right  point  of  view,  he  should  be  warned;  and 
if  after  that  he  fails  to  reform,  his  services  should  be 
dispensed  with.  One  disgruntled  policy-holder  is  like 
a  neglected  weed,  which  may  scatter  its  seeds  all  over 
the  farm,  and  be  responsible  for  a  crop  that  will  choke 
and  stunt  the  growth  of  the  grain  you  have  planted. 

Then  the  agent  should  see  to  it  that  the  policy-holder 
has  the  right  point  of  view.  This  is  a  broad  subject, 
and  is  deserving  of  careful  consideration,  but  its  dis- 
cussion must  be  postponed  for  another  chapter. 


HOW  TO   SELL  ASSURANCE.  155 


CHAPTER  XX. 

THE  RIGHT   POINT  OF   VIEW.— (Continued.) 

It  is  important  for  the  agent  that  the  policy-holder 
should  regard  his  assurance  from  the  right  point  of  view. 

To  illustrate  this,  let  me  indicate  to  you  my  own  point 
of  view  regarding  my  own  assurance — for  I  am  not  of- 
fering medicine  which  I  am  not  willing  to  take  myself.  It 
is  natural  for  me  to  think  that,  from  my  familiarity  with 
the  business,  and  my  observation  of  its  workings,  I  have 
the  right  point  of  view.  If  I  am  correct  in  this,  then 
there  are  a  vast  number  of  policy-holders  who  have  the 
wrong  point  of  view,  because  many  of  them  look  at  their 
investments  in  life  assurance  very  differently;  and  if 
their  way  is  wrong,  it  will  pay  the  agents  whose  clients 
they  are  to  enlighten  them. 

I  have  a  number  of  policies  on  my  life,  and  the  one 
which  gives  me  most  satisfaction  is  one  for  $8,000  (on 
the  annual  dividend,  ordinary  life  plan)  which  I  took 
almost  before  I  had  reached  years  of  discretion,  and  be- 
fore I  had  any  thought  of  marriage.  I  took  it  simply 
because  I  believed  in  life  assurance  and  wanted  to  force 
myself  to  save  a  little  money  from  year  to  year  out  of 
my  slender  income.  I  have  never  stopped  to  add  to- 
gether the  premiums  I  have  paid  on  that  policy,  for  now 
I  have  a  family  to  support,  and  no  matter  how  long  I 


I$6  HOW  TO   SELL  ASSURANCE. 

live,  I  hope  to  leave  a  round  amount  of  assurance  for  the 
settlement  of  my  estate ;  and  so  when  I  come  to  pay  the 
premium  on  this  $8,000  policy — a  premium  which,  less 
the  dividend,  is  not  much  more  than  $100 — I  congratu- 
late myself  that  I  took  this  policy  when  I  was  young, 
because  of  all  the  active  policies  I  carry,  I  get  from  this 
the  most  assurance  for  the  least  annual  outlay.  I  wish 
I  could  have  taken  more  of  the  same  kind  at  the  same 
time. 

The  man  who  lives  long  and  pays  premiums  for  many 
years  should  look  at  his  assurance  as  he  looks  at  the 
rent  he  pays  for  the  house  in  which  he  lives  or  as  he 
views  any  other  annual  expense.  It  is  so  much  a  year; 
it  is  at  such  and  such  a  rate.  What  man  would  be  fool 
enough  to  insure  his  property  against  fire  if  the  only  con- 
sideration were  the  relation  between  the  amount  of  the 
insurance  and  the  aggregate  to  be  paid  in  premiums 
during  a  long  series  of  years  ?  You  will  find  in  London 
many  a  building  that  has  been  insured  for  a  couple  of 
centuries;  but  does  the  owner  allow  his  policy  to  run 
out  because  he  and  his  ancestors  have  paid  premiums 
on  it  for  two  hundred  years — which  premiums,  if  added 
together,  would  make  a  sum  altogether  out  of  propor- 
tion to  the  amount  of  the  insurance  ?  Certainly  not. 

I  have  on  my  own  life  another  policy  which  gives  me  a 
great  deal  of  satisfaction.  It  ended  its  accumulation 
period  several  years  ago,  and  I  determined  to  continue 
it  as  a  paid-up  policy  for  its  full  face  value.  It  had  not 
been  a  cheap  policy,  but  it  can  never  give  the  least  trouble 


HOW  TO   SELL  ASSURANCE.  157 

hereafter,  because  the  premiums  have  all  been  paid. 
It  is  in  my  safe,  and  I  need  never  look  at  stock  lists 
or  real  estate  records  to  find  out  whether  there  has  been 
any  shrinkage  in  its  value.  It  is  a  definite  amount  which 
my  executors  can  surely  obtain  for  the  asking  when  they 
need  it. 

Another  of  my  policies  is  for  $35,000.  It  is  a  fifteen- 
payment  life,  with  a  fifteen-year  accumulation  period. 
It  is  on  a  more  expensive  form,  but  was  issued  at  an 
older  age,  consequently  the  premium  is  $1,507.10.  I 
take  great  satisfaction  in  this  policy  also,  but  for  other 
reasons.  Its  period  will  end  in  a  few  months.  I 
shall  then  be  able  to  draw  the  reserve,  $17,575.25, 
and  I  shall  also  be  able  to  draw  the  surplus.  Some 
years  ago  in  making  an  inventory,  I  made  a 
memorandum  in  reference  to  this  surplus.  I  delib- 
erately cut  in  two  the  amount  of  surplus  the  com- 
pany was  then  paying,  and  put  the  reduced  amount 
down  in  my  inventory.  I  said  to  myself :  "  One 
thing  is  certain  and  that  is  that  the  dividend  will  be 
larger  than  the  amount  I  have  put  down.  How  much 
larger  I  cannot  tell,  but  I  am  sure  that  at  least  the 
amount  I  have  recorded  will  be  forthcoming."  Now,  as 
the  time  for  payment  approaches,  it  gives  me  a  great  deal 
of  satisfaction  to  feel  that  the  profits  (barring  unfore- 
seen accidents)  will  be  very  much  what  they  were  when 
I  made  my  calculation,  so  I  count  on  getting  a  consid- 
erably larger  sum  than  my  inventory  calls  for.  My 
point  of  view  is  such  that  I  cannot  be  disappointed,  and 


158  HOW  TO   SELL  ASSURANCE. 

I  am  likely  to  be  highly  gratified.  If,  as  some  people 
have  done,  I  had  fixed  my  attention  on  estimates  made 
years  ago,  when  conditions  were  altogether  different,  I 
should  be  laying  up  disappointment  for  myself.  My 
point  of  view  in  that  case  would  be  unfortunate. 

Then  again  I  take  great  satisfaction  in  all  my  policies, 
because  I  remember  the  comfort  I  have  had  from  the 
protection  they  have  given  me  all  these  years.  I  take 
great  satisfaction  in  the  thought  that  when  my  deferred 
dividend  policies  end  their  periods  I  shall  have  the  right 
to  continue  them.  What  a  mistaken  point  of  view  it  is 
for  the  policy-holder  to  consider  only  on  what  terms  he 
can  get  rid  of  his  assurance !  How  much  better  it  would 
be  in  the  long  run  for  agents  if  they  would  more  fre- 
quently use  their  influence  to  keep  policies  in  force  at 
the  end  of  their  periods  (utilizing  the  surplus,  perhaps, 
for  additional  assurance)  rather  than  to  advise  the  sur- 
render of  the  old  policy  for  cash. 


HOW  TO   SELL  ASSURANCE.  159 


CHAPTER  XXI. 

THE  RIGHT  POINT  OF  VIEW.— (Continued.) 

We  have  seen  that  no  agent  can  succeed  who  regards 
his  business  from  a  wrong  point  of  view,  and  we  have 
seen  that  it  is  equally  important  for  the  agent  to  see  to 
it  that  his  policy-holders  have  the  right  point  of  view. 
Let  us  still  further  illustrate  the  latter  proposition  by 
considering  the  case  of  an  old  policy-holder,  whose  assur- 
ance was  issued  before  deferred  dividend  policies  (guar- 
anteeing the  full  reserve  in  cash  at  the  end  of  the  period) 
had  ever  been  heard  of.  He  feels  that  his  premium  is 
a  burden;  and  he  sees  that  there  is  no  way  of  shifting 
the  burden.  Moreover,  he  counts  up  the  number  of 
years  during  which  he  has  been  paying  premiums,  and 
adds  the  premiums  together.  From  his  mistaken  point 
of  view  he  imagines  that  he  has  good  reason  to  com- 
plain, and  perhaps  the  agent  may  say,  "  There  is  no 
use  of  bothering  with  this  old  man.  He  will  be  out  of 
the  way  before  long.  There  is  nothing  to  be  gained  by 
troubling  myself  with  his  case."  But  old  men  are  gar- 
rulous, and  younger  men  may  listen  to  their  advice. 
Besides,  this  policy-holder  has  sons  who  need  assur- 
ance, and  you  need  his  influence  in  getting  at  them. 
Moreover,  he  has  a  daughter  who  is  about  to  be  mar- 
ried, and  if  you  are  on  friendly  terms  with  the  old  man, 


160  HOW  TO  SELL  ASSURANCE. 

you  can  show  him  that  for  his  own  protection  he  must 
exert  his  influence  with  his  son-in-law  so  that  if  the  son- 
in-law  dies  there  shall  be  assurance  to  take  care  of  the 
widow.  By  patient  care  you  can  cure  this  sorehead,  and 
indirectly  the  advantage  to  your  business  may  be  very 
great. 

What  proportion  of  the  hundreds  of  thousands  of 
men  in  the  United  States  who  own  life  policies  are  alive 
to  the  fact  that  all  these  policies,  if  kept  in  force,  will 
sooner  or  later  certainly  be  paid?  Think  of  the  mul- 
titudes of  investments  into  which  men  all  over  the  coun- 
try have  put  their  money  that  have  become  worthless! 
If  a  man  looks  at  this  question  from  the  right  point  of 
view,  he  will  see  that  every  life  policy  is  not  only  a  pro- 
tection, but  an  investment.  A  fire  policy  is  only  a  pro- 
tection, but  every  life  policy  issued  by  a  responsible 
company  must  mature  and  be  paid  some  day  if  the 
owner  holds  fast  to  it.  What  a  fool  a  man  is,  therefore, 
after  investing  in  a  policy  at  the  advice  of  an  agent,  to 
throw  it  away  at  the  end  of  a  year  or  two  on  the  ground 
that  he  cannot  afford  the  "  expense  " !  What  a  fool  a 
man  is  if  he  chance  to  be  a  little  hard  up  to  "  economize  " 
by  throwing  to  the  winds  his  share  in  the  millions  of 
assets  of  a  great  financial  institution,  to  which  he  has 
secured  a  title !  What  a  fool  a  man  is  who,  after  carry- 
ing* a  policy  for  a  number  of  years  for  protection,  throws 
a  valuable  investment  away  simply  because  his  prosper- 
ity has  increased  and  he  no  longer  needs  the  protection. 
If  such  a  man  had  the  right  point  of  view  (the  point 


HOW  TO  SELL  ASSURANCE.  161 

of  view  from  which  he  regards  his  investments  in  stocks 
and  bonds)  he  would  see  that  to  abandon  a  policy  under 
such  circumstances  is  precisely  like  throwing  some  of 
his  railroad  bonds  into  his  scrap  basket  because  he  has 
grown  rich,  and  has  many  more  bonds  than  he  expected 
to  have  when  he  began  to  invest. 

How  much  could  be  done  if  every  agent  of  the  Society 
would  take  every  opportunity  to  explain  to  his  policy- 
holders  that  they  ought  to  turn  square  round  and  look 
at  life  assurance  from  an  altogether  new  point  of  view. 
There  are  a  few  men  who  already  have  the  right  point 
of  view,  but  only  a  few. 

How  many  policy-holders  understand  what  it  means 
when  their  attention  is  called  to  the  fact  that  the  business 
of  the  Equitable  is  conducted  on  the  mutual  plan  ?  How 
many  of  them  recognize  the  fact  that  they  are,  in  a 
sense,  members  of  the  Society;  that  they  are  assuring 
their  own  lives;  that  they  are  accumulating  surplus  for 
their  own  profit;  that  they  are  paying  the  claims  of 
members  who  die;  that  they  are  the  ones  who  suffer  if 
the  Society  is  injured  through  the  desertion  of  policy- 
holders  ;  that  if  the  Society  takes  extra  hazardous  risks 
without  extra  charge,  they  must  pay  for  it? 

How  many  policy-holders  recognize  the  fact  that  they 
are  supremely  fortunate  in  having  their  assurance  in 
the  Equitable,  because  the  Society  is  so  conducted  that 
they  secure  the  largest  profits  consistent  with  the  great- 
est security? 

How  many  policy-holders  recognize  the  fact  that  by 


HOW  TO   SELL  ASSURANCE. 


co-operating  with  the  agents  in  keeping  members  from 
drifting  away,  in  bringing  new  and  desirable  risks  to 
the  Society,  in  saying  a  good  word  for  life  assurance 
and  for  their  own  company  from  time  to  time,  they  will 
increase  their  own  pecuniary  profit? 


HOW  TO   SELL  ASSURANCE.  163 

CHAPTER  XXII. 

OFFICERS  CAN  GIVE  POINTS  TO  AGENTS. 

These  papers  are  for  the  instruction  of  agents,  but 
some  one  may  say :  "  How  can  those  men  who  are 
shut  up  in  an  office  teach  the  men  who  are  in  the  field? 
What  can  the  officers  know  of  the  difficulties  with 
which  the  agents  have  to  contend  ?  " 

These  are  fair  questions,  and  are  worth  answering. 

Well,  a  man  may  be  able  to  make  an  excellent  rifle, 
and  yet  not  be  a  good  shot.  It  does  not  follow,  there- 
fore, that  the  office  man  cannot  give  valuable  hints 
to  the  field  man.  Besides,  you  may  have  heard  that 
some  of  the  Equitable's  officers  have  been  first-class 
solicitors. 

You  remember  the  story  of  the  train  starter  who  dis- 
covered that  he  had  made  a  blunder  in  sending  out  a 
certain  train.  Instantly  he  telegraphed  for  doctors  and 
ambulances,  and  sent  a  wrecking  train  off  along  the 
line.  Nothing  had  happened,  no  accident  had  occurred, 
but  he  knew  that  later  on  at  a  certain  place  and  at  a  cer- 
tain time  there  would  be  a  collision.  He  was  not  driv- 
ing either  of  the  distant  locomotives  that  were  moving 
swiftly  toward  each  other,  but  he  knew  what  their  own 
engineers  did  not  know,  namely,  that  both  trains  were  in 
deadly  peril;  that  a  multitude  of  passengers  would  lose 


164  HOW  TO   SELL  ASSURANCE. 

their  lives.  There  is  a  moral  to  this  story,  which  is  that 
the  officers  must  know  how  to  run  the  business  and  must 
conduct  it  wisely,  in  accordance  with  that  knowledge, 
or  the  agents  and  policy-holders  will  suffer.  But  my 
object  in  repeating  this  story  is  not  to  point  a  moral, 
but  to  illustrate  the  fact  that  an  official  at  headquarters 
may  be  in  a  position  to  know  a  great  deal  about 
what  is  going  on  beyond  his  own  field  of  vision,  and  may 
at  times  see  and  understand  the  movements  of  others 
who  are  ignorant  of  the  full  significance  of  their  own 
actions. 

The  officers  of  a  life  company  at  headquarters  are  at 
a  central  \point,  to  which  information  about  the  work  of 
the  entire  field  converges.  Do  you  suppose  there  is 
any  sort  of  difficulty  or  perplexity  with  which  the 
agents  have  had  to  contend  concerning  which  the  officers 
are  ignorant  ?  No ;  if  one  agent  does  not  inform  them, 
another  is  sure  to  do  so. 

For  many  years  the  officers  of  the  Equitable  have 
been  students  of  life  assurance.  The  younger  officers 
have  profited  by  the  counsel  and  experience  of  their 
elders,  and  have  taken  up  the  development  of  the  work 
at  the  point  to  which  it  had  been  brought. 

We  are  not  only  familiar  with  the  methods  employed 
by  the  agents  now  in  the  field,  but  have  watched  those 
of  earlier  generations.  We  know  perfectly  well  the 
qualities  which  made  Henry  H.  Hyde,  of  Boston,  the 
most  successful  solicitor  of  his  day.  We  know  why 
men  like  Brawner,  and  Jennison,  and  William  T.  Blod- 


HOW  TO   SELL  ASSURANCE.  165 

gett,  and  other  early  Equitable  agents,  succeeded,  and 
why  this  success  was  not  permanent  in  every  instance. 
We  know  why  it  is  that  some  agents  meet  with  instant 
success,  while  others  develop  slowly.  This  knowledge 
enables  us  to  equip  the  agent ;  to  give  him  sound  counsel ; 
to  encourage  and  caution  him.  The  officers  know  what 
the  agents  want  at  the  present  time,  and  they  intend  to 
keep  in  touch  with  them  so  as  to  be  constantly  aware  of 
changing  needs  and  altering  conditions.  It  is  their 
pleasure,  as  it  is  their  duty,  to  give  agents  every  proper 
facility — the  latest  and  best  equipment  and  arms. 

But  some  agent  may  say :  "  If  you  know  all  this, 
why  is  it  that  you  do  not  remove  all  the  obstacles  that 
beset  our  path  ?  " 

Agents  meet  certain  difficulties.  They  point  out  to 
the  officers  how  they  can  be  removed.  But  the  officers 
feel  it  to  be  their  duty  to  refuse,  because  they  see  that 
in  removing  them  others  of  a  far  more  serious  character 
would  ensue.  This  is  just  where  the  officers  of  some 
companies  have  shown  weakness,  and  by  seeking  to  give 
temporary  aid  to  their  agents,  have  done  them  and 
their  companies  permanent  injury. 

Agents,  especially  new  agents,  sometimes  claim  that 
they  could  frame  a  policy  that  would  sell  better  than 
any  in  the  market.  This  would  in  most  cases  be  no  idle 
boast.  No  one  knows  as  well  as  the  agent  what  will  help 
and  what  will  hinder  his  sales.  But  the  problem  is  a  far 
more  complicated  one  than  that.  A  good  policy  must 
be  made  not  only  to  sell,  but  to  last,  and  to  give  satis- 


1 66  HOW  TO   SELL  ASSURANCE. 

i 

faction  at  its  maturity,  and  it  must  tend  to  the  prosperity 
and  not  to  the  injury  of  the  company — and  that  not  for 
a  day,  but  for  all  time.  Hence  it  is  that  many  things 
that  would  help  to  sell  a  policy  are  inadmissible,  for  busi- 
ness or  scientific  reasons. 

The  framing  of  a  new  policy  is  like  the  building  of 
a  racing  craft.  The  officers  are  the  shipbuilders  and 
the  agent  is  the  skipper  who  will  sail  the  boat.  His 
counsel  is  invaluable.  He  is  able  to  point  out  defects 
in  former  models.  But  there  are  many  delicate  prob- 
lems. What  will  serve  on  smooth  water  in  a  light  breeze 
will  not  serve  in  a  high  sea  in  a  gale  of  wind.  If  every- 
thing is  sacrificed  to  lightness  there  will  be  insufficient 
strength. 

It  is  true  that  there  must  be  intelligent  co-operation 
between  the  builder  in  the  workshop  and  the  seaman  at 
the  helm,  but  it  does  not  follow  from  the  fact  that  the 
builder's  province  is  to  spend  most  of  his  time  in  the 
shop,  that  he  is  ignorant  of  the  needs  and  preferences  of 
the  man  who  is  to  sail  the  boat.  Herreshoff,  the  most 
famous  designer  of  that  famous  family  of  shipbuilders, 
was  blind,  consequently  he  could  not  sail  the  yachts 
which  he  planned.  He  could  not  even  see  how  they 
moved  through  the  water,  but  they  proved  their  effi- 
ciency by  winning. 

But  to  return  to  the  main  question.  The  agent  en- 
counters difficulties,  and  he  hastily  exclaims,  "  Why 
don't  the  officers  remove  them  and  make  our  path 
smooth?"  This  question  has  already  been  answered, 


HOW  TO  SELL  ASSURANCE.  167 

but  there  is  a  phase  of  it  which  has  not  been  touched 
upon.  There  are  many  difficulties  which  are  inherent 
to  the  business  of  soliciting  life  assurance  which  will 
never  be  removed.  But  do  not  conclude  from  this  that 
the  agent's  lot  is  unusually  hard.  Every  calling  has  its 
own  difficulties,  and  the  man  who  escapes  those  peculiar 
to  life  assurance  and  enters  into  some  other  field  of  labor 
will  find  that  he  will  have  new  disadvantages  with  which 
to  contend.  On  the  other  hand,  a  life  agent  has  excep- 
tional advantages.  He  enjoys  a  freedom  which  is  rare 
in  business  life.  He  enjoys  an  independence  which  is 
very  unusual.  He  is  usually  master  of  his  own  time 
and  of  his  own  movements.  If  he  is  without  wealth, 
but  is  the  possessor  of  the  requisite  mental  qualities, 
he  may  quickly  achieve  results  and  accumulate  profits 
which  could  not  be  paralleled  in  other  lines  of  business 
by  men  without  large  capital.  Many  men  of  marked 
ability  who  are  engaged  in  other  pursuits  are  so  restrict- 
ed that  they  are  unable  to  exercise  the  talents  they 
possess;  but  every  life  agent  can  carve  out  for  himself 
a  path  to  success  if  he  has  the  requisite  ability  and 
energy. 

The  agent  is  the  man  behind  the  gun,  but  the  value 
of  the  gun  must  have  some  consideration.  If  our 
American  sailors  had  been  behind  the  Spanish  guns  their 
achievements  would  have  been  less  remarkable  than 
they  were;  for  if  the  mechanism  of  your  gun  is  out  of 
order,  if  your  ammunition  is  inadequate,  the  man  behind 
the  gun  will  be  seriously  hampered. 


1 68  HOW  TO   SELL  ASSURANCE. 

Let  me  repeat,  then,  that  the  Equitable  Society  could 
never  have  reached  its  present  position  under  the  man- 
agement of  officers  ignorant  of  the  best  methods  of  can- 
vassing, or  indifferent  to  the  trials  and  tribulations  of 
the  agents  in  the  field.  These  officers  have  well  defined 
duties  to  perform.  Canvassing  is  not  necessarily  one  of 
them,  but  a  knowledge  of  canvassing  is. 

In  the  first  place,  they  must  be  masters  of  the  theory 
and  practice  of  life  assurance,  and  be  able  to  see  what 
the  effect  of  action  taken  to-day  will  be  thirty  or  forty 
or  fifty  years  hence. 

In  the  second  place,  they  must  conduct  prudently  and 
effectively  the  affairs  of  a  great  financial  institution. 

In  the  third  place,  they  must  be  competent  to  give  the 
agents  good  tools,  and  must  be  able  to  aid  them  in  their 
work. 

To  this  end  they  must  appreciate  and  understand  the 
agent's  trials  and  difficulties,  removing  those  that  can 
be  removed,  and  aiding  him  in  dealing  successfully 
with  those  which  cannot  be  removed. 


HOW  TO   SELL  ASSURANCE.  169 

CHAPTER  XXIII. 
THE  VALUE  OF  SENTIMENT  TO  THE  AGENT. 

IMPORTANCE  OF   CONCENTRATION. 

The  best  motto  for  the  life  agent  is  "  This  One  Thing 
I  Do."  That  was  the  motto  of  a  youth  who  lived  near 
West  Point,  on  the  Hudson  River.  Here's  what  the 
New  York  Sun  says  about  him : 

Highland  Falls,  N.  Y.— When  Arthur  Slausen,  aged  thirteen 
went  fishing  this  afternoon  he  took  with  him  little  Harry  Rose, 
aged  eight.  An  hour  or  two  later  little  Harry's  father  came 
upon  Slausen  as  he  sat  alone  on  the  bank  of  the  Hudson  fishing. 

"Where's  Harry?" 
"  I  dunno." 

"  What  has  become  of  him?  " 
"  I  dunno." 

"  When  did  he  leave  you  ?  " 
"  I  don't  know  nothin'  about  him." 

"  But  you  must  know.    Where's  my  boy?    What  have  you 
done  with  him  ?    Tell  me — be  quick ! ' 
"  Well — I  shoved  him  in  the  river." 

It  was  true !  The  little  boy  was  dead  at  the  bottom 
of  the  Hudson. 

"  Why  did  you  do  it  ?  "  somebody  asked. 

"  Because  he  bothered  me,"  was  the  retort. 

"  And  you  saw  him  drown?  " 

"  Yep." 

"  And  you  did  not  try  to  save  him?  " 

"  No." 

"Why?" 

"  I  was  afishin'." 


170  HOW  TO   SELL  ASSURANCE. 

Young  Slausen's  course  was  most  reprehensible,  but 
his  singleness  of  purpose  teaches  a  valuable  lesson  to 
the  life  assurance  agent,  and  that  not  simply  on  the 
general  principle  that  a  shoemaker  should  stick  to  his 
last,  but  for  a  special  reason,  namely,  that  the  work  of 
the  life  agent  is  not  material,  but  spiritual.  If  he  is  to 
succeed  it  must  be  through  the  influence  of  mind  on 
mind — will  against  will — confidence  against  doubt,  cer- 
tainty against  uncertainty,  enthusiasm  against  apathy. 

WHY   SENTIMENT   IS   IMPORTANT. 

The  instrument  with  which  the  agent  achieves  his 
triumph  is  himself.  If  his  mind  and  heart  are  not  at- 
tuned to  this  work  he  can  no  more  hope  to  achieve 
success  than  the  musician  can  hope  to  extract  sweet 
strains  from  a  violin  that  is  cracked.  But  if  he  repre- 
sents a  company  in  which  he  has  pride;  if  he  is  in  har- 
mony with  its  management ;  if  there  are  no  jarring  dis- 
cords; if  through  its  influence  he  is  tuned  up  to  con- 
cert pitch,  then  he  can  discourse  sweet  music  and  charm 
all  hearers.  Hence  the  Equitable  agent  must  be  imbued 
with  the  Equitable  spirit,  and  must  train  his  mind  and 
heart  as  the  athlete  trains  his  body,  or  as  the  prima 
donna  cultivates  her  voice,  in  order  that  the  means  may 
be  adapted  to  the  end  for  which  he  strives. 

Soon  after  I  joined  the  Equitable,  and  when  I  was  yet 
young  and  inexperienced,  I  once  listened  to  a  speech 
made  by  Mr.  Hyde  to  a  body  of  Equitable  agents.  He 


HOW  TO   SELL  ASSURANCE.  171 

urged  upon  them  the  importance  of  sentiment  in  their 
business;  he  claimed  that  their  success  depended  on 
the  quality  of  their  sentiment  for  the  company  they 
represented.  I  did  not  at  the  time  fully  grasp  the  sig- 
nificance of  that  statement.  "  Is  it  not,"  said  I  to  my- 
self, "a  mere  matter  of  business  with  the  agent?  He 
has  certain  goods  to  sell  and  if  he  gets  paid  for  his 
work  is  that  not  all  there  is  to  it  ?  "  No.  In  the  case 
of  those  who  represent  the  Equitable  that  certainly  is 
not  the  case,  although  it  may  be  so  with  the  agents  of 
some  companies.  To  appeal  to  the  sentiment  of  the 
agents  of  certain  companies  would  be  like  seeking  to  feed 
hungry  men  on  stones  or  sending  them  to  gather  grapes 
from  thorns  or  figs  from  thistles.  Hence  the  agents  of 
such  companies  are  to  be  commiserated.  But  Mr.  Hyde 
was  right  as  far  as  the  agents  of  the  Equitable  are  con- 
cerned. The  Equitable  agent  has  no  more  valuable  pos- 
session than  this  sentiment — his  loyalty  to  his  Society; 
his  confidence  in  the  integrity  of  its  management;  his 
appreciation  of  the  reforms  it  has  introduced;  his  con- 
viction that  its  administration  is  just ;  that  its  affairs  will 
be  conducted  in  the  future  as  they  have  been  in  the  past, 
in  a  spirit  of  the  strictest  mutuality,  for  the  best  in- 
terests of  its  policy-holders. 

Life  assurance  companies  may  be  divided  into  three 
classes : 

i.  Those  that  do  a  strictly  legitimate  business  quiet- 
ly and  unostentatiously;  that  originate  nothing;  that 


172  HOW  TO   SELL  ASSURANCE. 

lay  themselves  open  to  no  criticism ;  but,  on  the  contrary, 
deserve  commendation. 

2.  Those  that  seek  to  make  a  sensation;  whose  chief 
aim  is  to  do  a  large  business  for  its  own  sake ;  who  are 
ready  to  do  anything  to  beat  the  Equitable,  even  if  they 
must  ride  down  and  trample  upon  their  own  policy- 
holders  to  accomplish  their  purpose;  who  are  always 
crying  reform  where  there  is  no  reform,  or  practicing 
liberality  to  strangers  at  the  expense  of  their  own  stead- 
fast members;  who  disregard  principle;  who  eschew 
science;  who  do  not  scruple  to  obliterate  the  old  land- 
marks; who  are  clever  and  smart  and  superficially  and 
temporarily  successful,  but  who  are  all  the  time  doing- 
injury  to  their  policy-holders  and  to  the  noble  calling  of 
life  assurance. 

Now,  the  Equitable  belongs  to  neither  of  these  classes. 
It  does  not  belong  to  the  first  category,  because  the  com- 
panies of  that  class  are  neither  aggressive  nor  progress- 
ive and  the  Equitable  is  both.  It  does  not  belong  to  the 
second  category,  because  the  Equitable  does  hold  to 
sound  doctrine;  does  seek  to  protect  its  members;  does 
aim  to  do  only  a  sound,  wholesome,  lasting  business. 
It  belongs  to  a  third  and  altogether  different  class. 

It  has  done  more  than  any  other  company  to  develop 
and  improve  the  practice  of  modern  life  assurance. 

Have  you  ever  thought  what  assurance  would  be  to- 
day if  the  Equitable  had  never  existed,  and  if  its  first 
President,  and  its  second  President,  or  its  third  Pres- 
ident had  never  lived?  I  once  had  a  dream  of  precisely 


&OW  TO   SELL  ASSURANCE.  173 

that  situation,  and  this  is  what  I  saw  in  my  vision.  The 
business  was  restricted  to  a  few  dry  channels.  The 
policy  contract  had  grown  and  grown  until  it  had  be- 
come twenty  or  thirty  pages  in  length — a  technical  and 
obscure  legal  instrument  loaded  down  with  arduous  con- 
ditions, leaving  to  the  widow  and  orphan  a  lawsuit  in- 
stead of  a  legacy;  resulting  in  contests  and  disputes. 
In  the  few  cases  where  some  return  was  made  to  the  ben- 
eficiaries it  was  after  hope  deferred  had  made  the  heart 
utterly  sick.  No  return  of  the  entire  reserve  at  any  pe- 
riod was  guaranteed.  No  promise  of  a  full  share  of  sur- 
plus profits  at  any  time  was  made.  Every  company  had 
its  staff  of  adjusters  traveling  over  the  country  digging 
up  points  to  be  used  in  resisting  the  payment  of  claims. 
The  whole  system  had  become  a  snare  and  a  delusion, 
and  was  steadily  falling  into  decay. 

But  this  was  only  a  dream.  As  a  matter  of  fact,  dur- 
ing the  last  forty  years  improvements  and  reforms  have 
followed  one  another  in  quick  succession,  and  the  Equi- 
table has,  in  nearly  every  instance,  been  the  company  to 
introduce  them.  It  has  cleared  the  way;  it  has  made 
the  path  smooth;  and  whenever  it  has  penetrated  into 
a  new  country  it  has  there  established  peace  and  safety, 
and  the  other  companies  have  followed  in  and  shared 
the  advantage.  The  Equitable  has  ever  been  the  first 
company  to  see  the  need  for  reform,  and  it  has  had  the 
nerve  to  act  first  and  alone,  and  the  grit  to  stand  stead- 
fast when  assailed  for  taking  the  initiative. 


174  HOW  TO   SELL  ASSURANCE. 

TRUE  ENTERPRISE. 

There  are  a  few  agents  who  acknowledge  the  truth  of 
all  this  as  far  as  the  past  is  concerned,  but  who  some- 
times wonder  whether  the  Equitable  has  not,  during  the 
recent  years,  ceased  to  advance — allowing  other  compan- 
ies to  get  ahead  of  it.  Do  not  permit  any  such  fallacy  to 
dim  your  vision.  Remember  that  it  is  one  thing  to  go 
forward  along  the  right  path  in  the  right  direction,  and 
another  and  a  very  different  thing  to  dash  ahead  heed- 
lessly over  a  path  that  may  finally  lead  you  over  a  cliff. 
Not  all  new  things  are  reforms,  and  if  the  Equitable  is 
not  introducing  something  new  at  every  turn  it  is  be- 
cause it  has  brought  the  practice  of  American  life  as- 
surance to  so  complete  a  state  that  most  of  the  great  and 
far-reaching  reforms  are  things  of  the  past.  Conse- 
quently when  the  Equitable  calls  a  halt  it  is  not  be- 
cause it  has  lost  courage,  but  because  it  has  arrived. 
Again,  if  some  other  company  introduces  some  new 
thing  that  tends  to  evil  and  disintegration  and  the  Equi- 
table says :  "  No,  our  motto  is,  Not  for  a  day,  but  for  all 
time,"  its  protest  does  not  indicate  a  faint  heart  or  di- 
minished enterprise. 

PECUNIARY  VALUE  OF  SENTIMENT. 

It  is  a  privilege  for  the  agent  to  be  connected  with 
such  a  company  as  the  Equitable,  and  the  fact  that  it  is 
such  a  company  draws  the  staff  officers  and  field  officers 
together  as  those  of  no  other  company  can  be  drawn. 


HOW  TO   SELL  ASSURANCE.  175 

And  this  is  no  mean  advantage.  It  "  cuts  ice." 
"  There's  money  in  it."  It  means  dollars  for  the  agent. 
Just  as  the  stream  cannot  rise  above  the  level  of  the 
spring,  so  the  agent  cannot  instil  into  the  mind  of 
the  man  he  solicits  more  confidence  than  he  has  within 
himself.  With  the  successful  agent  it  is  a  transfer  of 
his  enthusiasm  to  the  applicant,  but  the  agent  cannot 
have  genuine  enthusiasm  about  a  company  in  which 
he  has  little  confidence  himself.  Since  it  is  true,  there- 
fore, that  the  agent  can  place  absolute  reliance  upon 
the  management  of  the  Equitable,  that  certainly  will 
create  in  him  a  burning  zeal,  and  that  zeal  will  have  a 
money  value  with  which  he  can  purchase  success.  The 
agent  is  a  sort  of  automobile,  dead  and  motionless  if 
his  storage  battery  is  exhausted,  but  if  he  can  charge 
himself  with  electricity  at  the  Equitable  power-house  he 
can  take  passengers  aboard  and  carry  them  to  their 
destination, 

Such  facts  as  these  explain  why  some  men  of  ability 
fail  to  produce  adequate  results,  even  when  they  occupy 
the  richest  fields,  while  men  of  inferior  capacity  in  poorer 
fields  succeed.  It  is  for  such  reasons  that  men  of  mod- 
erate attainments  often  outrun  men  of  exceptional  force, 
and  that  those  who  are  weak  sometimes  accomplish  more 
than  those  who  are  strong.  But  when  the  strongest  man, 
in  the  most  fruitful  territory,  is  overflowing  with  senti- 
ment about  the  strongest  and  best  company  in  the  world, 
then  it  is  that  brilliant  achievements  astonish  the  people. 

Let  me  recapitulate.     The  agent's  success  depends 


176  HOW  tO   SELL  ASSURANCE. 

upon  himself — upon  the  condition  of  his  own  mind,  and 
its  concentration  on  his  work.  If  he  lacks  confidence  in 
his  company  and  its  policy  of  management  his  mind  will 
not  be  attuned  to  his  work,  and  he  will  not  achieve 
marked  success.  Hence,  it  pays  for  an  agent  to  be  iden- 
tified with  such  a  company  as  the  Equitable,  for  thereby 
he  will  be  charged  with  a  mental  and  spiritual  force 
which  will  enable  him  to  convince  those  with  whom  he 
talks,  and  thus  constrain  them  to  cast  in  their  lot  with  us. 

A  SIGNIFICANT  ILLUSTRATION  OF  THE  PRACTICAL  VALUE 
OF  SENTIMENT. 

And  how  can  the  value  of  loyal  enthusiasm  be  illus- 
trated more  fittingly  than  by  referring  to  a  notable  ex- 
hibition of  sentiment  on  the  part  of  the  agents  of  the 
Equitable;  an  exhibition  unparalleled  in  the  history  of 
life  assurance?  The  officers  are  proud  of  their  associa- 
tion with  a  body  of  such  loyal  agents  as  those  who  at 
the  close  of  the  year  1899  rose  as  one  man  to  resist  an 
assault  upon  the  fair  fame  and  prosperity  of  their  be- 
loved Society.  What  a  notable  uprising  it  was ! 

Glance  for  a  moment  at  the  facts : 

As  the  year  1899  came  to  a  close  it  was  known  to  all 
the  world  that  the  entire  agency  force  of  the  Society 
was  entering  upon  a  period  of  transition.  The  officers 
of  another  company  reasoned  thus :  "  With  the  agents 
of  the  Equitable  it  is  purely  a  matter  of  dollars  and  cents. 
They  will  all  be  foot-loose  at  the  beginning  of  the  year. 


HOW  TO  SELL  ASSURANCE.  177 

They  expect  to  be  compensated  hereafter  on  a  basis- 
better  for  them  in  the  long  run,  it  is  true — but  less  re- 
munerative in  the  beginning.  Hence,  as  they  are  likely 
to  look  no  further  than  the  ends  of  their  own  noses,  and 
as  they  will  be  in  an  unsettled  and  uncertain  frame  of 
mind  at  that  time,  they  can  easily  be  dazzled  by  offers  of 
immediate  advantage;  we  can  readily  draw  them  from 
their  allegiance  to  the  Equitable,  and  by  such  a  course 
we  shall  gain  a  two-fold  advantage :  we  shall  add  to  our 
glory  and  seriously  cripple  an  active  competitor. 

But  they  reckoned  without  their  host.  They  little 
knew  the  sentiment  of  the  Equitable's  agents.  What 
was  the  result?  First,  indignation;  then  enthusiasm; 
finally,  a  welding  of  those  bands  of  confidence  and  sym- 
pathy which  have  always  bound  the  Equitable  and  its 
officers  and  its  agents  together.  From  that  hour  a  burn- 
ing zeal  has  characterized  the  work  of  the  agents  of  the 
Equitable  Society  unexampled  even  in  our  own  history, 
noted  as  it  is  for  so  many  signal  triumphs. 

And  this  exhibition  of  loyalty  has  been  so  remarkable 
that  I  can  liken  it  only  to  that  spirit  of  patriotism 
which  thrilled  through  every  fibre  of  the  American  peo- 
ple when  war  was  declared  with  Spain.  Do  not  smile, 
then,  if  I  quote  words  that  are  threadbare,  but  whose 
meaning  must  ever  be  fresh  and  inspiring  : 

Breathes  there  a  man  with  soul  so  dead 
Who  never  to  himself  hath  said, 
This  is  my  own,  my  native  land? 


1 78  HOW  TO   SELL  ASSURANCE. 

Breathes  there  an  agent  of  the  Equitable  who  never 
has  said  to  himself :  "  This  is  my  own,  my  chosen  com- 
pany of  which  I  am  justly  proud,  in  which  I  have  im- 
movable confidence ;  under  whose  banner  I  shall  always 
serve ;  in  whose  successes  I  rejoice,  and  whose  triumphs 
will  ever  be  my  triumphs  ?  " 

If  there  be  in  our  ranks  an  agent  who  is  without 
this  spirit  of  loyalty  let  him  examine  himself  to  see 
whether  his  failure  to  attain  to  a  full  measure  of  success 
is  not  due  to  a  lack  of  proper  sentiment. 

THE  AGENT'S  REWARD  is  NOT  SIMPLY  A  CONSCIOUSNESS 

OF  VIRTUE;  HE  SECURES  IN  ADDITION  A 

PECUNIARY  ADVANTAGE. 

And  now,  as  a  parting  word,  remember  this : 
Virtue  may  be  its  own  reward,  but  it  is  a  very  pleasant 
thing  if,  in  addition  to  that  reward,  we  receive  a  liberal 
cash  dividend.  And,  if  my  contention  is  sound,  the 
agent  who  is  imbued  with  the  true  Equitable  spirit  will 
receive  that  dividend,  for  the  agent  who  has  this  senti- 
ment will  do  a  larger  and  a  better  business;  and  if  he 
does  a  larger  and  a  better  business  he  will  make  more 
money ;  and  if  he  makes  more  money  he  can  extend  his 
field  of  operations,  and  his  success  and  prosperity  will 
steadily  increase. 


HOW  TO   SELL  ASSURANCE.  179 


CHAPTER  XXIV. 

SHOULD  THE  AGENT  APPEAL  TO  THE  SEN- 
TIMENT OF  HIS  CUSTOMER? 

After  reading  the  foregoing-  chapter  perhaps  you  will 
say,  "  If  it  is  important  for  the  agent  to  have  sentiment, 
how  much  more  important  it  must  be  for  the  agent  to  be 
able  to  appeal  to  the  sentiment  of  the  man  he  wishes 
to  assure !  "  But  this  is  a  debatable  question. 

There  are  two  ways  of  selling  assurance.  One  is  to 
appeal  to  the  sentiment  of  your  customer.  The  other 
is  to  eliminate  sentiment  and  offer  the  assurance  as  you 
would  offer  a  block  of  railroad  bonds.  Either  method 
is  legitimate.  Some  agents  prefer  the  first;  some  the 
second. 

There  are  occasions  when  I  should  certainly  advise 
an  agent  to  concentrate  his  efforts  on,  a  sentimental  ap- 
peal; when  a  man's  duty  to  his  family  must  be  im- 
pressed upon  him;  when  his  natural  affection  must  be 
awakened.  Or  it  may  be  necessary  to  paint  in  vivid 
colors  the  dangers  which  beset  his  path.  But  I  believe 
such  instances  are  rare.  Hence  I  strongly  advocate,  in 
general,  the  second  method  of  procedure,  and  my  rea- 
sons for  this  I  shall  give  in  another  chapter. 

The  analogies  between  religion  and  life  assurance  have 
often  been  noted.  These  analogies  are  striking  when 


l8o  HOW  TO   SELL  ASSURANCE. 

the  methods  of  the  divine  and  the  solicitor  are  compared. 
With  the  divine,  the  method  in  old  times  was  to  urge 
the  sinner  to  flee  from  the  wrath  to  come.  The  modern 
method  is  to  attract  him  by  picturing  the  joys  of  the  life 
eternal.  Now,  the  divine  who  dwells  upon  the  joy  in 
believing  does  not  necessarily  discard  the  doctrine  of 
future  punishment;  he  merely  decides  that  it  is  easier 
to  draw  his  hearer  by  offering  a  reward  than  to  drive 
him  by  threatening  punishment.  Thus  it  is  with  the 
solicitor.  He  recognizes  the  fact  that  if  he  can  show 
his  customer  that  it  is  to  his  pecuniary  advantage  to 
assure;  that  a  policy  is  a  good  investment,  which  will 
not  only  protect  his  family,  but  will  reward  him  if  he 
lives,  it  becomes  superfluous  for  him  to  dwell  upon  dis- 
tasteful themes.  Moreover,  in  most  cases  the  sentiment 
of  his  customer  will  assert  itself  without  any  stimulus 
from  him. 

But  as  the  sentimental  appeal  is  legitimate,  it  deserves 
consideration,  and  among  other  things  let  us  take  note 
of  some  of  the  books  which  have  been  of  service  in  the 
past  to  the  solicitors  who  have  followed  the  old  method 
of  canvassing. 

If  you  want  to  know  what  the  old  warnings  were  like, 
glance  over  the  pamphlets  that  were  in  vogue  twenty 
or  thirty  years  ago,  and  some  of  which  are  still  in  use. 
You  will  find  them  full  of  heartrending  instances  of 
the  misery  resulting  from  procrastination  and  neglect. 
These  pamphlets  were  often  written  by  clergymen.  One 
of  the  most  popular  writers  of  his  day,  the  Rev.  Dr. 


HOW  TO   SELL  ASSURANCE.  l8l 

Henry  Fish,  of  New  Jersey,  for  example,  was  the  author 
of  two  little  books  which  have  been  in  circulation  for 
many  years,  One  of  these  was  entitled  "  Words  to 
Wives/'  and  the  other  "Why  Not?"  At  the  end  of 
this  chapter  I  have  added  a  few  extracts  from  these  and 
kindred  publications. 

Sermons  have  often  been  preached  by  prominent 
clergymen  on  life  assurance.  If  you  are  not  familiar 
with  the  one  delivered  many  years  ago  by  the  late  Dr. 
Talmage  when  he  was  pastor  of  the  Brooklyn  Taberna- 
cle, I  advise  you  to  read  it.  Here  are  one  or  two  ex- 
tracts from  it : 

It  is  meanly  selfish  for  you  to  be  so  absorbed  in  the  heaven  to 
which  you  are  going  that  you  forget  what  is  to  become  of  your 
wife  and  children  after  you  are  dead.  It  is  a  mean  thing  for 
you  to  go  up  to  heaven  while  they  go  to  the  poorhouse. 


The  minister  may  preach  a  splendid  sermon  over  your  re- 
mains, and  the  quartette  may  sing  like  four  angels  alighted  in 
the  organ  loft,  but  your  death  will  be  a  swindle.  You  had  the 
means  to  provide  for  the  comfort  of  your  household  when  you 
left  it,  and  you  wickedly  neglected  so  to  do. 

If  there  be  anything  more  pitiable  than  a  woman  delicately 
brought  up  and  given  to  a  man  to  whom  she  is  the  chief  joy  and 
pride  of  life  until  the  moment  of  his  death,  and  then  that  same 
woman  going  out  with  helpless  children  at  her  back  to  struggle 
for  bread  in  a  world  where  brawny  muscle  and  ruggedness  of 
soul  are  necessary — I  say,  if  there  be  anything  more  pitiable 
than  that,  I  don't  know  what  it  is. 

The  following  appeared  in  a  newspaper  published  in 
Providence,  R.  I. : 

Three  years  ago,  Philip  Sullivan,  of  Fall  River,  died,  leaving 
a  heavily  mortgaged  house,  a  widow  and  three  children.  In 


182  HOW  TO   SELL   ASSURANCE. 

vain  the  widow  worked  to  pay  off  the  debt;  the  property  was 
sold  to  satisfy  the  mortgage,  and  the  poor  woman  and  her  little 
ones  were  turned  into  the  street.  She  brooded  over  her  loss, 
became  mentally  unbalanced  and  finally  was  possessed  of  the 
fixed  idea  that  if  she  and  her  children  slept  one  night  in  the 
house  one-third  of  its  value  would  revert  to  her.  Last  New 
Year's  eve  she  smuggled  them  into  the  attic  and  the  next  morn- 
ing the  purchaser  of  the  house  discovered  what  had  been  done 
and  sent  for  the  police.  At  the  station  it  was  found  that  noth- 
ing could  be  done  for  her  except  to  send  her  to  the  almshouse. 
The  children  began  to  cry  piteously  at  the  thought  of  separation, 
and  were  with  difficulty  taken  away  to  an  orphan  asylum. 

It  is  not  likely  that  the  reporter  who  contributed  this 
item  to  his  paper  was  thinking  about  life  assurance,  but 
what  a  text  for  a  sermon  on  "  Sentiment  in  Life  Assur- 
ance !  "  And  how  the  pathos  of  the  story  is  deepened 
when  we  think  that  all  this  misery  might  have  been 
averted  if  the  husband  of  that  unfortunate  widow  had 
assured  his  life  for  an  amount  sufficient  to  pay  off  that 
mortgage  at  his  death ! 

Every  agent  knows  how  heartrending  are  the  cases 
of  those  widows  whose  husbands,  after  having  protect- 
ed them  for  a  time  by  life  assurance,  have  allowed  their 
policies  to  lapse.  The  following  letter  has  been  quoted 
before.  It  refers  to  a  policy  issued  by  the  Equitable 
which  was  allowed  to  lapse  after  only  one  premium  had 
been  paid : 

DEAR  SIRS  :  I  have  been  thinking  ever  since  Mr.  A.'s  death  of 
writing,  but  my  health  and  trouble  have  prevented  me  from 
doing  so. 

Will  you  please  let  me  have  his  assurance  money  as  soon  as 
possible,  as  I  am  very  much  in  need  of  it,  having  the  debts  of  a 
very  heavy  doctor's  bill  and  burial  expenses  to  pay.  His  assur- 
ance money  is  all  I  have  to  depend  on.  MRS.  J.  E.  A. 


HOW  TO  SELL  ASSURANCE.  183 

What  a  pathetic  appeal !  Think  of  the  despair  of  the 
widow  when  she  received  the  agent's  letter  explaining 
that  there  was  no  assurance!  The  writing  of  that  let- 
ter must  have  been  very  painful  to  the  agent,  and  I  have 
no  doubt  that  he  put  his  hand  into  his  own  pocket  and 
contributed  something  to  stay  the  hunger  of  those  orphan 
children,  although  I  dare  say  that  so  many  other  ago- 
nizing instances  had  come  to  his  notice  that  he  might 
very  properly  have  been  excused  for  refusing  to  con- 
tribute. 

With  such  facts  within  the  observation  of  every  agent 
in  the  land,  it  would  be  folly  to  say  that  the  sentimental 
method  of  appeal  is  not  legitimate.  But  I  contend  that 
as  a  rule,  in  cases  where  such  an  appeal  would  suffice, 
the  other  method  will  prove  far  more  efficacious.  My 
reasons  for  this  you  will  find  in  the  next  chapter 

EXTRACTS  FROM  OLD  PUBLICATIONS. 

You  may  not  die  for  a  long  time — but  you  may  die  to-morrow 
— and  some  time  you  must  die.  If  it  was  probable  that  you 
would  die  soon,  you  could  not  get  assurance  at  any  price. 

If  you,  living,  find  it  hard  to  make  both  ends  meet,  how  do 
you  think  your  family  are  going  to  do  it  when  you  are  dead? 

Look  upon  the  faces  of  your  children.  Do  you  love  them? 
Then  do  not  leave  them  exposed  to  possible  poverty  and  its  at- 
tendant temptations. — Dr.  Fish,  in  "  Why  Not." 


Is  it  right  that  any  virtuous  woman  should  be  left  homeless 
and  unprotected  ?  And  yet  how  many  such  there  are !  And 
why?  The  lack  of  that  few  hundred  or  thousand  dollars— 
which  a  life  policy  would  have  procured — lost  the  widow  her  all. 

And  now  in  abject  poverty,  she  can  scarcely  endure  the  re- 
flection that  a  comfortable  subsistence  was  within  her  reach, 


184  HOW  TO  SELL  ASSURANCE. 

and  yet  it  is  not  hers !  What  town  or  village  has  not  its  "  desti- 
tute widows  "  ?  Our  cities  are  full  of  them.  You  know  many 
of  them.  Perhaps  they  are  fighting  off  starvation  and  tempta- 
tion with  the  point  of  a  needle.  Very  often  you  meet  one  of 
them.  There !  she  knocks  at  your  door.  She  has  come  because 
she  must!  Poor  thing!  Buy  a  book  or  a  picture,  or  subscribe 
for  a  magazine  that  she  is  canvassing  for.  Help  her ;  she  needs 
it !  How  sad  she  looks,  and  pitiful !  She  is  young  and  hand- 
some— ah !  this  may  be  her  ruin !  Have  you  a  daughter  ?  And 
if  you  are  left  penniless  can  you  shield  her  from  the  world's 
dangers,  trials  and  temptations,  as  you  could  if  your  husband 
makes  some  sure  provision  while  he  lives? — Dr.  Fish,  in 
"  Words  to  Wives." 


One  could  easily  bear  to  be  poor;  poverty  for  one's  self  is  no 
great  ill,  and  wealth  for  one's  self  is  no  great  blessing,  oftener 
a  curse.  One  could  even  bear  to  take  his  wife  and  children 
down  with  him  into  poverty,  so  long  as  he  could  be  with  them 
to  help  them  carry  the  load,  and  carry  the  heaviest  part  himself. 
But  to  go  off  to  his  own  eternal  rest  and  to  leave  them  to  go 
down  into  poverty,  and  to  fight  the  wolf  from  the  door — to  leave 
the  boys  who  have  been  at  school  or  college  to  abandon  hope  of 
education  and  go  into  clerkships ;  and  the  daughters  who  have 
been  reared  in  comfort  to  become  teachers,  or  governesses,  or 
seamstresses;  and  the  wife,  who  has  been  fed  and  housed  and 
clothed,  to  feed  and  house  and  clothe  not  only  herself  but  per- 
haps her  little  children,  and  to  be  removed  from  all  possibility 
of  giving  help  or  even  comfort  to  the  forlorn  wife  in  such  a  bat- 
tle— what  prospect  more  terrible  than  this  to  look  forward  to? 
Every  man  is  bound  by  the  highest  consideration  of  prudence 
and  honor  to  guard  those  who  have  entrusted  their  destiny  in 
his  hands  against  such  a  contingency. — Dr.  Lyman  Abbott. 


There  are,  doubtless,  thousands  who  had  the  means  of  insur- 
ing their  lives  two  years  ago,  but  who  are  now  too  poor  to  do  it. 
There  are  many  yet  able  who  neglect  it  because  they  do  not  ex- 
pect to  be  poor,  who,  nevertheless,  will  become  impoverished. 
We  are  so  deeply  impressed  with  the  importance  of  such  pru- 
dential considerations  that  we  regard  the  matter  not  simply  as 
one  of  prudence,  but  as  a  moral  duty. 

Once  the  question  was :    Can  a  Christian  man  rightfully  seek 


HOW  TO   SELL  ASSURANCE.  185 

such  assurance?  That  day  has  passed.  Now  the  question  is: 
Can  a  Christian  man  j  ustify  himself  in  neglecting  such  a  duty. 

Money  secured  to  your  family  by  life  assurance  will  go  to 
them  without  fail  or  interruption  (provided  you  have  used  due 
discretion  in  the  selection  of  a  sound  and  honorable  assurance 
company.)  Of  two  courses,  one  of  which  may  leave  your  family 
destitute,  and  the  other  of  which  assures  them  a  comfortable 
support  at  your  decease,  can  there  be  a  doubt  which  is  to  be 
chosen?  Can  there  be  a  doubt  about  a  duty? 

How  shall  we  know  what  societies  are  sound  and  well-man- 
aged? Just  as  you  know  what  banks  are  good  and  bad — by  in- 
quiring, by  using  your  common  sense.  Just  as  you  find  out  a 
good  doctor,  a  good  lawyer,  a  good  school,  a  good  hotel. — Henry 
Ward  Beecher  in  "  Truth  in  a  Nutshell." 


1 86  HOW  TO   SELL  ASSURANCE. 


CHAPTER   XXV. 

THE  AGENT  MAY  AVOID  A   SENTIMENTAL 
APPEAL. 

We  have  seen,  in  Chapter  XXIII,  how  important  sen- 
timent is  to  the  agent,  and  we  have  seen,  in  Chapter 
XXIV,  that  in  some  cases  it  may  be  very  advantageous 
for  the  agent  to  appeal  to  the  sentiment  of  his  customer ; 
but  most  life  assurance  agents  have  given  up  the  old 
plan  of  appealing  to  a  man's  sentiment.  Instead  of  try- 
ing to  frighten  him  into  assuring  his  life,  he  offers  him 
an  attractive  investment. 

A  modern  policy  is  a  good  thing  to  have — good  for 
the  investor,  as  well  as  for  those  who  are  to  succeed  him, 
and  well  worth  the  money  he  puts  into  it.  Hence,  it  is 
seldom  necessary  to  remind  him  of  his  duty,  or  to  point 
to  the  harrowing  instances  of  misery  resulting  from 
neglect. 

Where  men  go  gladly  it  is  not  necessary  to  coerce 
them.  Moreover,  there  is  something  of  the  mule  in 
every  one  of  us;  therefore  when  people  try  to  drive  us 
we  instinctively  resist. 

If  you  want  to  assure  a  man's  life,  you  must  keep  him 
in  a  good  humor,  and  you  cannot  keep  him  in  a  good 
humor  by  dwelling  upon  disagreeable  themes.  Nor  does 
any  man  like  to  be  told  by  a  stranger  that  he  is  neg- 


HOW  TO  SELL  ASSURANCE.  187 

lecting  his  duty.    Nor  does  it  cheer  him  to  be  told  that 
death  is  staring  him  in  the  face.     Therefore,  sell  your 
assurance  on  a  strictly  business  basis. 
"  Many  a  true  word  is  spoken  in  jest,"  and  I  call  your 


•f.  "You  may  flhjp  tiff  any  mFn- 
nte  and  leave  yoar  family  unpro- 
vided for." 

attention  to  the  accompanying  caricatures,  which  are 
here  reproduced  through  the  courtesy  of  a  New  York 
newspaper.*  These  pictures  were  not  made  for  educa- 
tional purposes,  but  nevertheless  they  tell  the  agent  how 

*The  Journal. 


1 88  HOW  TO   SELL  ASSURANCE. 

not  to  canvass.  They  depict  a  man  driven  mad  by  the 
indiscreet  advice  of  life  assurance  agents,  and  locked  up, 
at  last,  in  Cell  No.  15  of  an  insane  asylum. 

Many  a  wife  has  prevented  her  husband  from  assuring 
his  life  because  she  has  viewed  the  subject  from  a  purely 
sentimental  standpoint;  and  even  the  husband  finds  the 
subject  a  distasteful  one  when  thus  presented.  He  is 
full  of  courage,  and  hope,  and  vigor.  He  has  no  thought 
of  dying.  His  confidence  in  life  is  a  natural  and  healthy 
instinct.  He  is  ready  to  go  into  new  enterprises,  and  to 
invest  his  money  in  them,  not  because  he  fears  death, 
but  because  he  expects  to  live,  and  wishes  to  make  pro- 
vision for  the  future. 

Modern  life  assurance  has  become  a  mighty  force 
because  it  appeals  to  a  man's  selfish  needs.  That  is  to 
say,  the  man  who  assures  his  life  is  not  making  a  sac- 
rifice. He  knows  that  he  is  improving  his  own  condi- 
tion. Hence,  the  best  way  to  sell  a  policy  is  to  use  pre- 
cisely the  same  arguments  that  would  appeal  to  the  man 
in  search  of  an  ordinary  investment. 

A  man  well  known  to  me,  but  whose  name  I  am  not 
at  liberty  to  mention,  applied  to  the  Equitable  some  years 
ago  for  a  policy.  I  became  familiar  with  his  circum- 
stances at  the  time,  and  I  have  followed  his  case  with 
interest  ever  since.  It  seems  that  he  had  accumulated, 
by  inheritance  and  saving,  a  capital  of  nearly  $100,000. 
Knowing  that  if  he  should  die  his  family  would  have 
the  income  from  that  capital,  he  was  happy  and  con- 
tent. But,  wishing  to  increase  this  capital,  he  embarked 


HOW  TO   SELL  ASSURANCE.  189 

in  a  speculation  outside  of  his  legitimate  business.  Dur- 
ing a  period  of  financial  disaster  all  his  accumulations 
were  swept  away,  and  he  was  left,  besides,  with  heavy 
obligations.  His  income  from  his  own  business  con- 
tinued, but  he  knew  that,  in  the  event  of  premature 


2.  "Just  think  of  the  risks  you 
run  every  time  you  cross  the 
street !" 

death,  his  family  would  be  destitute.  Immediately  he 
determined  to  assure  his  life  for  the  amount  of  his  losses 
—$100,000.  Now,  it  is  perfectly  true  that  he  took  this 
for  the  protection  of  his  family,  but  the  transaction  was, 
in  the  main,  a  cool,  carefully  calculated  business  opera- 


1 90  HOW  TO   SELL  ASSURANCE. 

tion — I  might  say  a  selfish  operation,  prompted  chiefly 
by  self-interest.  He  reasoned  as  follows:  His  losses 
threatened  to  impair  his  credit.  If  he  lost  his  credit, 
not  only  would  his  debts  overwhelm  him,  but  his  busi- 
ness would  be  ruined  and  his  prospects  shattered.  He 
was  living  on  a  scale  which  made  him  somewhat  con- 
spicuous, and  to  adopt  a  policy  of  retrenchment  would 
have  aroused  suspicion  as  to  his  financial  ability. 
Then,  again,  he  saw  that  any  radical  change  would  in- 
volve the  sacrifice  of  property  which,  if  held,  would  un- 
doubtedly recover  its  value.  Besides,  he  enjoyed  the 
comforts  of  life,  and  was  unwilling  to  give  them  up, 
and  it  would  have  been  both  mortifying  and  distasteful 
to  him  to  sell  his  house  and  dismiss  his  servants  and 
resign  from  his  clubs.  On  the  other  hand,  he  felt  that 
he  would  get  little  enjoyment  out  of  these  material  com- 
forts if  they  should  be  continued  while  the  future  of  his 
family  remained  imperiled.  He  was  in  a  dilemma.  How 
could  he  expect  to  accumulate  a  new  fortune  unless  he 
cut  down  expenses,  and  how  could  he  cut  down  expenses 
without  endangering  his  credit?  He  had  but  one  re- 
source. He  was  still  young,  and  the  premium  on  a 
large  policy  involved,  comparatively  speaking,  but  a 
small  charge  against  his  annual  income.  But  as  soon 
as  he  had  laid  the  necessary  amount  aside  with  which 
to  pay  the  premium,  he  was  able  to  spend  the  bal- 
ance of  his  income  with  a  free  hand.  What  has  been 
the  result?  Without  unduly  pinching  himself,  he  has 
been  able  to  transact  his  business  with  good  success  dur- 


HOW   TO   SELL  ASSURANCE.  191 

ing  recent  years;  and,  if  I  am  correctly  informed, 
has  succeeded  in  accumulating  a  capital  as  large,  or  per- 
haps larger,  than  the  amount  that  was  swept  away.  To- 
day, therefore,  his  estate  has  double  the  value  it  had  in 
the  beginning;  for  he  has  a  new  invested  capital  of 
upwards  of  $100,000,  and,  in  addition,  an  equal  amount 


3.    "Our  policy   insure* 
against  suicide,  tool" 

of  capital  represented  by  his  policy.  And,  most  impor- 
tant of  all,  if  he  had  not  taken  this  assurance,  it  is  alto- 
gether probable  that  he  would  not  have  been  able  to 
save  anything,  and  probably  his  whole  future  would 
have  been  blighted.  Furthermore,  this  man  was  ad- 
vised to  take  his  assurance  on  a  plan  which  will  give 
him  ultimately  the  opportunity  of  realizing  a  substantial 


192  HOW  TO   SELL  ASSURANCE. 

cash  return  himself  if  he  no  longer  cares  for  the  pro- 
tection of  the  assurance. 

Think  of  the  admirable  adaptability  of  life  assurance 
to  this  case !  Here  is  a  man  threatened  with  bankruptcy 
who  averts  danger  by  assuring  his  life ;  who  thereby 
builds  up  a  new  capital  for  his  own  use ;  who  meanwhile 
retains  the  means  of  enjoying  life  as  he  goes  along;  who 
thus  relieves  his  mind  of  all  apprehension,  and  who  is 
probably  a  richer  man  to-day  than  he  would  have  been 
if  he  had  never  lost  a  penny ! 

This  is  but  one  out  of  the  many  examples  of  the  adapt- 
ability of  life  assurance  to  the  needs  of  business  men. 
And  the  reason  men  of  wealth,  men  of  affairs,  men  en- 
gaged in  great  enterprises,  men  of  every  calling  and 
condition,  are  now  turning  to  life  assurance  is  because 
agents  of  ability  have  turned  from  the  sentimental  side 
of  the  subject  and  are  presenting  it  to  business  men  on 
business  grounds. 

In  England  men  assure  their  lives  very  much  as  busi- 
ness men  here  insure  their  property  against  fire;  and 
the  time  is  not  far  distant  in  this  country  when  life  as- 
surance will  be  regarded  by  all  practical  men  as  a  busi- 
ness necessity,  just  as  all  men  recognize  the  fact  that 
to  carry  on  any  branch  of  business  successfully  they 
must  have  capital.  To  get  the  capital  they  need  in  their 
business  they  will  pay  any  rate  of  interest.  When  the 
rate  of  interest  rises,  they  do  not  go  without  money ;  they 
pay  the  higher  rate.  Thus  it  should  be  with  life-assur- 
ance. A  right  thinking  man  will  say :  "  No  matter  what 


HOW   TO   SELL  ASSURANCE. 


'93 


the  cost,  I  must  have  the  assurance — genuine  assur- 
ance, assurance  that  is  sure.  And,  although  the  question 
of  cost  is  important,  and  although  (other  things  being 
equal)  I  shall  of  course  select  a  company  that  will  pay 
me  liberal  dividends,  that  is  a  secondary  consideration. 


4.    "In  tha  midst  of  life  we  are  In  death." 

The  main  thing  is  that  I  must  have  the  assurance,  and 
it  must  be  safe  for  all  time,  beyond  all  peradventure ;  for, 
if  properly  utilized,  such  assurance  will  enable  me  to 
extend  my  business,  increase  my  capital,  strengthen  my 
credit,  improve  my  position,  and,  incidentally,  if  there 
should  be  an  accident  and  I  should  die  prematurely, 


194  HOW   TO   SELL  ASSURANCE. 

it  will  protect  my  family.  Or  if,  at  the  time  of  my 
death,  my  investments  are  of  a  character  which  cannot 
be  turned  into  ready  money  without  sacrifice,  my  assur- 
ance will  protect  my  estate." 

Men  are  like  children.    If  the  agent  goes  like  a  doc- 


5.    And  now  poor  No.  15  Imagines  he  Is  in  hto  tombf 

tor  to  dose  them  with  wholesome,  but  bitter  physic, 
they  will  seek  to  avoid  him.  But  if  he  goes  like  St.  Nich- 
olas, with  choice  gifts,  they  will  rejoice  to  see  him. 

And  remember  that  you  do  go  laden  with  precious 
gifts.  Yon  give  capital  to  men  who  are  poor;  you 
bring  comfort  and  happiness  to  widows  and  orphans ; 


HOW   TO   SELL  ASSURANCE.  195 

you  educate  children;  you  start  young  men  upon  their 
business  careers ;  you  give  men  the  right  to  spend  their 
incomes  freely  at  the  very  time  that  they  are  saving 
for  the  future ;  you  help  them  to  pay  off  their  mortgages ; 
you  enable  them  to  embark  safely  in  business  enterprises  ; 
you  strengthen  their  credit,  and  thus  make  money  for 
them;  you  perpetuate  business  firms,  and  cement  corpo- 
rate interests.  There  are  a  thousand  ways  in  which  you 
can  interest  and  delight  men  in  the  subject  of  assurance 
without  preaching  to  them,  or  reproaching  them,  and 
without  calling  upon  DEATH  to  act  as  your  solicitor. 

[END.] 


OF  THE 

UNIVERSITY 


RETURN  TO  the  circulation  desk  of  any 
University  of  California  Library 

or  to  the 

NORTHERN  REGIONAL  LIBRARY  FACILITY 
Bldg.  400,  Richmond  Field  Station 
University  of  California 
Richmond,  CA  94804-4698 

ALL  BOOKS  MAY  BE  RECALLED  AFTER  7  DAYS 

•  2-month  loans  may  be  renewed  by  calling 
(510)642-6753 

•  1-year  loans  may  be  recharged  by  bringing 
books  to  NRLF 

•  Renewals  and  recharges  may  be  made 
4  days  prior  to  due  date 

DUE  AS  STAMPED  BELOW 
SENT  ON  ILL 


NOV  1  8  2003 


U.  C.  BERKELEY 


DD20   1M  3-02 


X 


c 


